In preparation for a gathering of leading global financial policymakers in Indonesia, the German central bank said the "increased likelihood" of a global economic downturn made it imperative for governments to set aside funds.
Central bank governors and finance ministers from around the world will attend an annual meeting hosted by the International Monetary Fund (IMF) and the World Bank in Bali this week amid growing trade tensions between the United States and China and crises in some emerging markets.
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The German central bank will say at the summit that global economic growth is still strong, but the peak of the current economic cycle has passed, while political uncertainties related to trade conflicts and the UK's exit negotiations have led to increased risks.
"German and global economic cycles advance, increasing the likelihood of a downturn," Claudia Buch, deputy governor of the German central bank, said in a statement on Monday.
"This shortens the window of opportunity for fiscal consolidation and buffering to mitigate the cyclical risks of the financial system."

<>Germany will warn against possible increase in global growth

 

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