## GLOBAL FINANCIAL STABILITY REPORT — Key Highlights (Infographic)

## Source details

**Canonical URL:** [GLOBAL FINANCIAL STABILITY REPORT — Key Highlights (Infographic)](https://www.imf.org/-/media/files/publications/gfsr/2024/october/english/infographic.pdf)

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### Near-term assessment
- Near-term financial stability risks remain contained although uncertainty is elevated and vulnerabilities are mounting.
- Higher macroeconomic uncertainty raises risks to macrofinancial stability.

### Policy recommendations
- Gradually ease monetary policy where inflation momentum is set to slow further; push-back against overly optimistic investor expectation for easing where inflation remains above target.
- Focus on gradual and sustainable fiscal adjustment to rebuild buffers and reduce debt risks.
- Mitigate vulnerabilities: ensure bank resilience against credit risk, address nonbank leverage and liquidity mismatches.
- Engage in international cooperation on trade and climate.
- Adopt adequate macroprudential policies.
- Limit the buildup of public debt.
- Build reserve buffers and allow exchange rate flexibility to cushion against spillovers from global uncertainty.
- Establish credible policy frameworks and clearly communicate policies.

### AI adoption and capital markets — key vulnerabilities and mitigation
- Risks associated with large-scale adoption of sophisticated AI (Share of market participant responses):  
  - Job replacement  
  - Cyber risks (deepfake risks included in cyber risk)  
  - Market fragility and manipulation  
  - Vendor concentration  
  - Model explainability  
  - EMDE fragmentation  
  - Reputational risks  
  - Unauthorized data  
  - High costs  
  - Hallucinations
- Observations on presentation: the size and color of the bubbles represent the share of relevant AI risks according to market participants.
- Suggested market and operational mitigations:  
  - Address increased market speed and volatility under stress.  
  - Promote transparency and AI monitoring.  
  - Reduce operational risks on concentrated AI service providers.  
  - Ensure market integrity in over-the-counter markets.

### Quantitative signals from charts (as presented)
- Disconnect Between High Geopolitical Risk and Low Financial Market Volatility: labeled as "Differences in historical z-scores"; horizontal axis shows years 2013 14 15 16 17 18 19 20 21 22 23 24; vertical axis labeled with values: -2.0, -1.5, -1.0, -0.5, 0.0, 0.5, 1.0, 1.5, 2.0, 2.5. Series shown: "Financial volatility minus economic uncertainty" and "Financial volatility minus geopolitical risk".
- Effect of Macroeconomic Uncertainty on Growth-at-Risk at Different Horizons (percentage points, lowest decile of cumulative GDP growth distribution): vertical axis values shown -1.2, -1.0, -0.8, -0.6, -0.4, -0.2, 0.0; series points labeled "One quarter ahead" and "One year ahead".

*Source: IMF, October 2024 Global Financial Stability Report market intelligence; and IMF staff calculations. Note: Deepfake risks are included in cyber risk. The size and color of the bubbles represent the share of relevant AI risks according to market participants. AI = artificial intelligence; EMDE = emerging market and developing economies.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2024/october/english/infographic.pdf_