Global Financial Stability Report

• It is a biannual report which gives analyses of global economic developments during the near and medium term.

Highlights of the report:

• Global growth is projected at -4.4% (India’s -10.3%) in 2020 and 5.2% in 2021.

• China remains the lone major economy estimated to expand (1.9% in 2020).

Suggestions:

• Multilateral cooperation is needed to defuse trade and technology tensions between countries.

• Collectively implement climate change mitigation commitments.
Global Financial Stability report:

• It provides an assessment of the global financial system and markets, and addresses emerging market financing in a global context.

Highlight of the report:

• Though, near-term global financial stability risks have been contained for now, vulnerabilities are rising, intensifying financial stability concerns in some countries.

Suggestions:

• Accommodative policies will be essential to ensure that recovery takes hold and becomes sustainable.

• Strengthening the regulatory framework for non- bank financial sector and stepping up prudential supervision.

———————————————
Mains Paper 3: Economy

Prelims level: Global Financial Stability Report

Mains level: Key highlights of the report

Subscribe to Get Weekly updates

Get daily current affair video, detailed current affairs PPT for quick revision and Free One Liner PDF directly in your inbox. Subscribe now to get this month's one liner for FREE.