Medium-term risks 'could hurt global financial stability'

Washington

SHORT-term risks to global financial stability have abated in recent months, but medium-term risks are building, the International Monetary Fund (IMF) warned on Wednesday, citing "the risk of a gradual slide into economic and financial stagnation".

It said in its latest Global Financial Stability Report that, in such a situation, "financial institutions struggle to sustain healthy balance sheets, which weakens economic growth and financial stability".

The report noted that commodity prices have risen from their lows earlier in the year and adjustments in emerging markets have su…