Emerging economies need to ensure flexibility in policy implementation: IMF

Zeebiz Bureau

Tokyo: Economic activity is slowing in emerging market and developing economies, reflecting weaker external and domestic demand and, in some cases, policy tightening to address inflationary pressures, the International Monetary Fund's steering committee said on Saturday.

" Risks are compounded for some countries by falling prices for non-food commodities and upward price pressures on some food items. These economies will need to ensure flexibility in policy implementation to support growth, consistent with global re-balancing, " the IMF's steering committee said in its communique.

"The potential impact from large and volatile cross-border capital flows should be closely monitored. The Fund has increased its support for Arab countries in transition and continues to work with these authorities as they develop home-grown national reform strategies to deliver inclusive growth and jobs."

"We call on the international community to provide broader support for this region. We welcome the increased engagement of the IMF with small states and look forward to further work in this area, " IMF said.