IMF, World Bank African governors concerned with global economic downside risks

The African governors of the World Bank Group and the International Monetary Fund (IMF) voiced their concerns on Friday over the increased downside risks to the global economy and the impacts on African economies. "These downside risks have been amplified in our countries against the backdrop of limited fiscal space, continued decline in commodity prices, declining trade flows and reduced access to concessional funding," said these African governors in a statement during the annual meetings of the IMF and World Bank. The world economy growth rate was expected to be 2.9 percent in 2013, 0.3 percentage point lower than its July projection, according to the IMF's World Economic Outlook report released on Tuesday. These African governors also expressed worries on uncertainty regarding the unwinding of unconventional monetary policies and the threat of potentially devastating budgetary challenges in the U.S. which if left unaddressed could derail the fragile recovery. Policymakers in advanced economies should be aware of negative spillovers of their policy actions and ensure that stimulus exit strategies are communicated clearly, said the governors. In addition, they reaffirmed their commitment to pursuing inclusive growth-oriented policies consistent with macroeconomic stability, and to rebuilding buffers as much as possible to better cope with external shocks.