The IMF announced the dangers threatening the world economy
Mariana Puzderi/ Chișinău / Moldova.ORG / -- Experts from the International Monetary Fund (IMF) warned of increasing risk level, threatening the global economy.
Among the reasons for particular concern are indicated the ongoing debt crisis in Greece, the debates on ways to eliminate the budget deficit in the U.S. and the need to control runaway growth of Asian markets.
The IMF experts reached this conclusion according to the results of a recent study of the global economy and financial systems stability of countries around the world, held in April.
Earlier, the World Bank President Robert Zoellick warned about the upcoming of large-scale crisis in the global economy.
Nevertheless, the IMF financiers believe that global growth will continue, although forecasts of GDP increase in the UK and the USA were revised slightly downward.
According to forecasts of the fund, in 2011 global growth will be 4.3%, and in 2012 - 4.5%.
Financial experts are calling for more active intervention of the international community in the euro zone debt crisis and fiscal crisis in the U.S.
"It is impossible to cancel solving of these problems of the world economy, as it is like playing with fire" - said the representative of the IMF, Jose Vinyals.
IMF specialists warn that the ongoing debt crisis in Greece can seriously destabilize the entire global financial system.
Many analysts believe that Greece will not be able to pay its debts, since the volume of already dialed government loans is too high.
"I think the question about whether Greece will announce a default is not necessary, the only question is whether this will be done in a calm and organised manner, or disorderly" - said a senior economic advisor of the largest Swiss bank UBS.
The IMF experts have warned that if Greece does not pay off its debts, it can also turn into serious trouble for other countries - especially Spain and Portugal.
Thus, the European banks that gave loans to these countries will suffer huge losses.
"In the event of a serious incident on the market, impact of the financial blow may go beyond the euro area", - stated in a prepared IMF experts report on the state of the global financial system.
In order to avoid further problems, analysts urge the European leaders to implement a policy of long-term financial planning and warn that European banks do not have enough money to withstand further deterioration of economic environment.
IMF points to serious debt problems outside the eurozone as well.
In particular, Japan does not manage to reduce it's budget spending due to the disastrous earthquake and tsunami that struck the country in March .
In the U.S., according to experts, there was "a stalemate political situation" as a result of searching for a solution on how to reduce the huge budget deficit.
Forecasts of U.S. economic growth have been reduced this year from 2.7% to 2.5%, next year - from 2.9% to 2.7%.
In addition, analysts warn that another serious threat is the housing market that weakened again.
At the same time, economic growth in the major European "Locomotives" - Germany and France - has exceeded the experts' expectations.
German GDP growth forecast for this year raised from 2.5% to 3.2%. Maybe this will help alleviate crisis in the eurozone, but the overall European growth this year is now expected at 1.6% - 0.4 percentage points less than before.
Rapid growth of the economy continues outside Europe, in the developing countries, but it also poses a threat to the stability of the global financial market, as things can quickly turn into a sharp decline.
"Financial flows moving towards the emerging markets may be too large and moving too fast" - warns IMF, noting that in several Asian countries, it has already led to inflation.
In particular, China has sharply increased property prices, threatening an equally rapid decline.
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