IMF deputy chief: Market volatility to persist up to 2-more-yrs

Current volatilities in the global economy are expected to persist for between 12 months and 24 months, Deputy Managing Director (DMD) of the International Monetary Fund (IMF) Zhu Min has said.

In his keynote address at the opening of the IMF Conference on Enhanced data for Better Macro-policies in the Ghanaian capital, Zhu said these volatilities will however not result in an economic melt-down.

Zhu Min“The market crunch will cause volatility and this is what happened in the past few weeks, as the market re-adjusted itself; interest rates continued upside; growth is still not as strong as they should be; interest rate increase indicated macro continued to adjust itself on downside unfortunately,” Zhu noted.

With liquidity getting very tight, capital flow will become very volatile, the DMD said.

The IMF expected to see market volatility continuing to be there-strong and big in the next 12 months to 24 months.

“However, it is just the volatility; we don’t see market melt-down situations.” he said.

In such a scenario, Zhu emphasized the importance of data urging the statistical bureaux and other relevant institutions to ensure data accuracy and reliability.

The conference which was organized by the IMF Statistics department and the Department for International Development (DFID) of Britain, is one of the largest African regional conferences on the importance of data for better macroeconomic policies under the theme “Enhanced Data for Better Macro-economic Policies”.

Ghana’s Finance Minister, Seth Terkper also addressed the opening of the conference.

According to him, Ghanaians are aware of how capital markets react to newly available information about the economy, and for that reason the government has pursued greater data transparency, including through participation in the IMF’s General Data Dissemination System.

“All of our efforts to strengthen our statistical framework contribute to enhancing our capacity to implement better policies. It also enhances our relationships with credit rating agencies and markets, allowing us to improve our access to financing,” Terkper added.