IMF: Risks for the world economy have decreased

According to Fund analysts, unemployment and recession are offsetting the current account balance

The report of the International Monetary Fund for Global Economic Prospects (World Economic Outlook) supports that the imbalances in the global current account have significantly decreased mainly due to contraction in demand.
IMF analysts, in today’s press conference referred to the content of the report, which according to its findings the global current account balances, assisted by the contraction of demand in deficit economies and the decline in growth. As a result, there are high percentages on unemployment and a lack of productivity.
Further, if a gradual increase in demand in Eurozone is noted, then that will lead to an increase as well of the deficit in trade of some countries.
Among others, it was highlighted  that the imbalances in the global current account were fairly limited, compare to its peak period in 2006 and as a result the risk for the economy worldwide is reduced.
Finally, during the report presentation it was stated that the IMF believes that “some economies” are “more vulnerable” to situations which are affecting the markets and that “troubled economies” must make progress on improving their current account balances, by paying particular attention to the development sector.