Market turbulence "could continue and deepen" - IMF

Fri Jul 19, 2013 10:08am EDT
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MOSCOW, July 19 (Reuters) - Current turbulence on global financial markets "could continue and deepen", the International Monetary Fund said in a briefing document prepared for Group of 20 finance ministers and central bankers meeting in Moscow.

"Growth could be lower than projected due to a protracted period of stagnation in the euro area, and risks of a longer slowdown in emerging markets have increased," the 13-page note, obtained by Reuters on Friday, said.

"Additionally, financial stability risks are a growing concern in both advanced and emerging economies," it said in its executive summary.

"The eventual exit from low rates and unconventional monetary policy in advanced economies could pose challenges for emerging economies, especially if it proceeds too fast or is not well communicated."

The document, entitled Global Prospects and Policy Challenges and prepared by the IMF staff, carried the rider that it did not necessarily reflect the views of the fund's executive board.