Inflation risks and global trade imbalances mean the world economy faces “testing times”, the head of the International Monetary Fund (IMF) said.
Deadlocked trade talks are another challenge Rodrigo de Rato added, ahead of a series of IMF and World Bank meetings in Singapore.
World Bank head Paul Wolfowitz, meanwhile, has branded Singapore as “authoritarian” for banning protestors.
More than 160 groups have boycotted the talks over the move.
They include leading non-governmental organisations who were accredited for the talks, including Friends of the Earth.
HOUSE prices in Britain are still too high, the International Monetary Fund said yesterday.
The IMF said that last year’s sharp downturn in property prices, which followed three years of double digit increases, had failed to restore balance to the market.
British homes, it said, “still seem over-valued by most conventional measures”.
The warning came amid new evidence of surging activity in the housing market, with property prices rising at their fastest for more than two years.
GORDON Brown faced a renewed warning today from the International Monetary Fund that an intense squeeze on public spending will be essential if he is to meet his self-imposed budget rules.
As the Treasury gears up for next year’s three-year comprehensive spending review, the IMF warned the Chancellor may have to tighten the screws on government departments even more than he has already signaled.
The commodity price boom over the last three years is unsustainable and will result in sharp price declines by the end of the decade, the International Monetary Fund has warned.
However, the fund is not predicting an immediate price collapse and its chief economist, Raghuram Rajan, said on Wednesday that metal prices were fairly valued.
Higher commodity prices have boosted the economies of resource-rich nations in the Middle East, South America, Africa, as well as Canada and Australia, but have added to the import bill in consuming countries in North America, Europe and Asia.