This is the word from the International Monetary Fund, in its July Update of the World Economic Outlook at the IMF headquarters in Washington DC this morning.
The IMF update by the IMF's Economic Counsellor and Director of Research Department Maury Obstfeld, said widespread political malaise driving many current policy risks, including on the trade front, has roots in several countries’ experiences of non-inclusive growth and structural transformation, heightened by the financial crisis of 2007-09 and the difficulties that followed.
Obstfeld said "It is urgent to address the underlying trends through equity-and growth-friendly policies, while assuring that macroeconomic tools are available to fight the next economic slowdown. Otherwise, the political future will only darken."
"While rising to these challenges, countries must resist inward-looking thinking and remember that on a range of problems of common interest, multilateral cooperation is vital," the IMF official noted.
"Issues of common concern—where national action is not enough—include strengthening the multilateral trading system, reducing excess global imbalances, financial stability policy, international tax policy, cyber and other terrorist threats, disease control, and global warming.
"A truly global effort is also needed to curtail corruption, which undermines faith in government in so many countries." the IMF observed.
"Finally, recurrent surges in international migration pressures, which have proven so politically destabilizing recently, cannot be avoided without cooperative action to improve international security, support the Sustainable Development Goals, and resist climate change and its effects," Obstfeld concluded.
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