From credit to capital outflows. Image: Unsplash Ibrahim Rifath This article is published in collaboration with IMF Blog 29 May 2020 Fabio M. Natalucci Deputy Director of the Monetary and Capital Markets Department, IMF Tobias Adrian Senior Vice President, Federal Reserve Bank of New York The World Economic Forum COVID Action Platform Learn more Most Popular COVID 19: What you need to know about the coronavirus pandemic on 26 MayRoss Chainey 26 May 2020 Areas of declining COVID 19 cases could see an imminent second wave, warns WHOReuters Staff 26 May 2020 Science leads the response to COVID 19. These 25 scientists are tackling the other global challengesAlice Hazelton and Martha Chahary 26 May 2020 More on the agenda Forum in focus World is 100 years away from gender parity but these countries are speeding things up Read more about this project Explore context COVID 19 Explore the latest strategic trends, research and analysis The International Monetary Fund has warned the coronavirus pandemic is further amplifying existing financial vulnerabilities. From capital outflows to corporate credit markets, risks exist across the world economy. Much the same way COVID 19 hits people with pre existing health conditions more strongly, so is the pandemic triggered economic crisis exposing and worsening financial vulnerabilities that have built up during a decade of extremely low rates and volatility.Our recently released chapters 2 4 of the Global Financial Stability Report focus on three potential weak spots: risky segments in global credit markets, emerging markets, and banks. Should the ongoing economic contraction last longer or be deeper than currently expected, the resulting tightening of financial conditions may be amplified by these vulnerabilities, causing more instability or even a financial crisis.
Coronavirus is worsening global financial fragility, according to the IMF