Emerging markets such as China pose a growing risk to advanced economies with events in developing economies increasingly responsible for price movements in financial markets in richer countries, the International Monetary Fund has warned.
Moreover, markets were only just beginning to feel what was likely to be the growing impact of China in the years to come as its financial links with the rest of the global economy increase, IMF economists said yesterday.
“It is likely that China’s spillovers to global financial markets will increase considerably in the next few years,” they said in a chapter of the upcoming Global Financial Stability Report released ahead of next week’s spring meetings of the IMF and World Bank.