英语文摘:IMF warns of downside risks amid uneven global recovery

Amid the uneven recovery, downside risks had increased compared with the spring, said the IMF in the report.

Geopolitical tensions have increased, which will affect the commodity market and economic activity; the "unexpected bumps" from the monetary policy normalization in the United States remain; protracted low inflation has posed risks to activity in some advanced economies, the euro area in particular; and the real estate market correction in China is challenging the country's economic rebalancing and also affecting its growth.

In the medium term, both advanced and emerging markets will face lower potential growth, partly due to aging population and weak growth in total factor productivity.

In order to fight low inflation in some advanced economies, the IMF suggested maintaining an accommodative monetary policy stance. In addition, promoting public investment and structural reforms and adopting macro prudential policy will help boost potential growth and maintain financial stability for both advanced and emerging economies.

For China, the IMF warned of the risks from real estate market corrections and said that vulnerabilities would continue to rise without a change in the pattern of growth that relies on credit and investment.

It added it's crucial to implement the authorities' structural reforms that aim to strengthen the regulation and supervision of the financial sector, liberalize the deposit rate and use interest rates instead of quantitative targets for the implementation of monetary policy.

China's domestic rebalancing strategy, together with further exchange rate flexibility, would also contribute to global rebalancing, the IMF said.