Three global pressure points worrying the IMF

PRESSURE POINT

Douglas Roberts, senior international economist at Standard Life Investments, assesses the global economy's potential pressure points as set out by the IMF.

The IMF recently adjudged the global economy was at heightened risk of falling back into recession. It identified major fault-lines in the US authorities’ failure to address its fiscal challenges, the European authorities’ failure to reach a resolution to its financial and economic woes and the Chinese economic slowdown. Just how real are these areas of stress, and do they pose a threat to the global economy? The US The US certainly faces a challenge in what to do about its impending ‘fiscal cliff’. The Congressional Budget Office (CBO) estimates the size of the fiscal changes would be...