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Monday April 18, 08:30
Rato: G7 members policies risky for global economy
(by Dr.Goldfinger)

Rato: G7 members policies risky for global economy

The Group of Seven member countries’ policies could disrupt global markets and impose risks on the poorest countries, according to the International Monetary Fund chief Rodrigo Rato.

"Although the central scenario of the world economy is extremely positive and we see a clear good opportunity for growth to continue, we are certainly not only advising countries but calling on countries to take action on those issues of global imbalances," Rato said on Saturday.

Growing deficits for the US and saving rates are those factors that can be dangerous for the poorest countries after the failure from the G7 countries – Britain, Canada, France, Germany, Italy, Japan and the US – to find common ground in the question of debt relief for the world’s poorest economies. That may lead to more deaths among children, Rato said.

"If policies do not adapt, do not change to react to these imbalances, we run the risk of an abrupt correction of the markets when confidence for different reasons could evaporate or could be reduced," he said.

Mr. Rato also pointed at the weaker performance of Japan, the world’s second-biggest economy. China should also unpeg its currency from dollar and have «more flexible exchange rates,» he added.

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