Global downturn has become more likely, Germany warns

FRANKFURT (Reuters) – A global economic downturn has become “more likely”, making it urgent for governments to set cash aside, Germany’s central bank was set to tell the world’s top financial policymakers gathering in Indonesia.

Central bankers and finance ministers from across the world are due to meet in Bali this week for the annual meetings of the International Monetary Fund and the World Bank, amid heightened trade tensions between the United States and China and crises in some emerging countries.

Germany’s Bundesbank was set to tell the summit that global growth remained robust but the economic cycle was now past its peak, while risks had risen due to political uncertainty relating to trade conflicts and Brexit negotiations.

“The advanced economic cycle in Germany and internationally makes a downturn more likely,” Bundesbank vice president Claudia Buch said in a statement published on Monday.

“That reduces the window of opportunity for fiscal consolidation and for the build-up of buffers to mitigate cyclical risks in the financial system.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.