Additional concern derives from the fact that some forms of risk that we understand to be important, such as liquidity and operational risk, cannot at present be precisely quantified, and some participants do not quantify them at all, effectively assuming them to be zero.
In addition, multilateral institutions have recently downgraded their economic growth projections. The International Monetary Fund (IMF) has, in its latest World Economic Outlook report1, pencilled in a 3.3% global growth forecast for this year, with an expected pickup in 2020 predicated on Chinese stimulus measures, improved market sentiment, dissipating temporary drags on euro-area growth, and stabilisation in certain stressed emerging market economies.