IMF urges China to tackle financial risks

Subject – Economy

Context – IMF urges China to tackle financial risks in ‘clear and coordinated’ fashion

Concept –

China must address financial risks in a “clear and coordinated fashion” and temporarily shift its fiscal policy to a neutral stance from this year’s contractionary approach, International Monetary Fund said in a statement.
The IMF blamed the slowdown to China’s rapid withdrawal of policy support, the hit to consumption from Covid-19 outbreaks, recent power outages and a slowdown in real estate investment.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) is an organization of 189 member countries, each of which has representation on the IMF’s executive board in proportion to its financial importance, so that the most powerful countries in the global economy have the most voting power.
The IMF, also known as the Fund, was conceived at a UN conference in Bretton Woods, New Hampshire, United States, in July 1944.
IMF focuses on fostering global monetary cooperation, securing financial stability, facilitating and promoting international trade, employment, and economic growth around the world.
The IMF is a specialized agency of the United Nations.

How the IMF Makes Decisions