"The outlook for activity remains unusually uncertain, and downside risks stemming from fiscal fragilities have come to the fore.  A key concern is that room for policy maneuvers in many advanced economies has either been exhausted or become much more limited.  Moreover, sovereign risks in advanced economies could undermine financial stability gains and extend the crisis.  The rapid increase in public debt and deterioration of fiscal balance sheets could be transmitted back to banking systems across borders."  IMF World Economic Outlook, April 2010.

Source:  IMF World Economic Outlook, April 2010.