The International Monetary Fund has once again called upon the leading developing countries to cope up with the financial crisis which is rising over the whole world. Once again the cloud is over the European countries regarding the newest crisis in the world market. The international financial body has urged the respective governing countries not to restrict the growth by tightening up the budget too closely. The whole Euro Zone is under the risk of the economic crisis but the IMF has told that their first and major priority is to concentrate on the growth.
Addressing to its 188 member countries, the International Monetary Fund for the economical purposes told in a summit that the growth is still a prime concern for the majority of the developing countries. The main reason behind this is the unemployment issue and few of the developing countries have successfully cope up with this issue. The economic world is still recovering from the 2007-2008 recession and yet another crisis is hanging over their head. But this time the international financial body is taking up all the precautionary measures to prevent any severe damages to the financial world. That is why they have asked for some bold actions to be taken as a precaution to avoid the crisis.
One of the first steps in this process was taken by the IMF when they cut the global growth rate of 2014 to 3.3 from 3.4. The IMF has shown major concern for the European countries over this new recession crisis and all its members were gathered in Washington for the fund’s fall meeting. Although the German finance minister Wolfgang Schaeuble has simply denied about any economic risk and said that there is no crisis hanging on over the German economy at all. Further he said that there is no need of any talk regarding this global issue. Under this circumstances the US remains the lone bright spot in the global market and as a result the investors have rushed there to catch up dollars. But there are major concerns that the global slowdown will affect the US economy as well and looking at the global growth rate, there is more worry about the downside risks than the upside risks.