World leaders, finance ministers, the private sector and nongovernmental organisations begin the Spring International Monetary Fund and World Bank meetings on the 10-year anniversary of the global financial crisis.
On Tuesday, the IMF's economic outlook report predicts short-term global growth to 3.9 per cent, it highlights debt levels, trade policies, decreased labor participation and aging populations as risks to long-term growth.
"The IMF is saying that now is the time for countries to get their houses in order to prevent and prepare for future financial crises," noted Jubilee USA Executive Director Eric LeCompte who serves on United Nation expert groups that focus on economic issues. LeCompte has monitored IMF meetings since the onset of the financial crisis. "The IMF is warning that rising debt levels are a growing risk around the world."
On Wednesday the Fund released its Global Financial Stability Report raising concerns that the global economy faces a "bumpy road ahead." The report warns that due to short and medium-term risks, the financial system could face serious risks to growth. Recently the Fund released analysis focusing on specific concerns with rising, unsustainable debt levels in Africa.
"We still have not done enough to improve debt restructuring and enact measure for responsible lending and borrowing," said LeCompte. "Beyond preventing the next crisis, the IMF is warning that we could have a recipe for greater inequality further dividing the rich and the poor."