Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Ambrey: Cameroon-flagged tanker issues distress call following explosion abroad, approximately 60NM south of Yemen's Ahwar.
Araghchi: Iran adopted a constructive approach in its engagement to ensure the European Union and the E3 fully honored their commitments and lifted all sanctions.
Araghchi: After a year of Iran’s full compliance with the agreement, it began implementing gradual, proportionate, and reversible compensatory steps in accordance with its recognized rights under the deal.
Araghchi: Iran demonstrated the utmost restraint in the face of repeated and fundamental violations and made extensive efforts to restore balance and preserve the agreement.
In his letter, Araghchi stated: The E3 failed to fulfill their obligations and instead imposed additional illegal sanctions on Iranian individuals and institutions.
Araghchi: These coercive measures constituted a grave violation of international law and the UN Charter, causing severe disruption in the implementation of the agreement.
Araghchi: Washington initially refrained from fulfilling its commitments, then withdrew from the agreement, reimposed its illegal and unilateral sanctions, and even expanded them.
Araghchi: UN Security Council Resolution 2231 has expired and fully ceased to be in effect as of today, in accordance with its explicit provisions.
Iranian Foreign Ministry: Reimposing sanctions on Iran is illegal
Occupied Palestine: Israeli occupation forces raid homes during a raid on the village of Al-Burj, south of al-Khalil

IMF warns developing countries of 'economic turbulence'

  • By Al Mayadeen Net
  • Source: Agencies
  • 10 Jan 2022 10:49
3 Min Read

Potentially difficult times are anticipated as the US Federal Reserve prepares to raise interest rates.

  • x
  • IMF warns developing countries of 'economic turbulence'
    IMF warns developing countries of 'economic turbulence'.

The International Monetary Fund (IMF) warned emerging economies on Monday to brace themselves for potentially difficult times as the US Federal Reserve prepares to raise interest rates and global economic growth slows due to the Omicron variant of Covid-19.

The International Monetary Fund, which is set to release updated economic forecasts on January 25, stated that for the time being, global economic recovery from the pandemic will continue this year and next.

The IMF economists Stephan Danninger, Kenneth Kang, and Helene Poirson wrote in a blog post that "risks to growth remain elevated by the stubbornly resurgent pandemic."

Since mid-December, the highly contagious Omicron strain has spread like wildfire around the world, causing a record number of new Covid cases in the latest wave of the global health crisis.

Omicron, which appears to cause less severe disease than previous coronavirus strains, is causing countries to reinstitute health measures that impede economic growth.

"Given the risk that this could coincide with faster Fed tightening, emerging economies should prepare for potential bouts of economic turbulence," the economists said, as these countries are also confronting elevated inflation and substantially higher public debt. 

Related News

Syria not seeking IMF, World Bank loans: Interim finance minister

IMF head flags US budget, Europe defense spending challenges

Higher interest rates

The Fed has indicated that it will raise key interest rates sooner and more aggressively than previously planned in order to combat rampant inflation in the United States, which is affecting US households and consumption – the engine of economic growth in the country.

Higher interest rates increase the cost of financing for some emerging economies with dollar-denominated debt.

These countries are already lagging in the global economic recovery, making them less able to absorb additional spending.

"While dollar borrowing costs remain low for many, concerns about domestic inflation and stable foreign funding led several emerging markets last year, including Brazil, Russia, and South Africa, to start raising interest rates," the IMF said.

According to the blog, faster Fed rate hikes could jolt financial markets and lead to tighter financial conditions on a global scale.

The risk is there will be a slowing of demand and trade in the US, as well as capital flight and a depreciation of the dollar in markets of emerging countries.

The IMF advised developing countries to "tailor their response based on their circumstances and vulnerabilities."

In addition, central banks that raise interest rates to combat inflation should engage in "clear and consistent communication" so that people understand the importance of price stability, according to the international lender.

  • Omicron
  • Coronavirus
  • US Federal Reserve
  • International Monetary Fund

Most Read

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Residents remove debris from a house damaged by Wednesday's two drone strikes, in Kabul, Afghanistan, Thursday, Oct. 16, 2025 (AP)
Politics

Afghanistan-Pakistan negotiations to begin in Doha: Exclusive

Palestine Action wins court fight to challenge UK terror ban
Politics

Palestine Action wins court fight to challenge UK 'terror' ban

John Bolton surrenders after classified documents indictment
Politics

John Bolton turns himself in after classified documents indictment

GSF, GMTG slams EU over complicity in Gaza genocide
Politics

GSF, GMTG slam EU over complicity in crimes against Palestinians

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS