* Financial market impact on global economy seen as manageable
* Economic fundamentals in major economies remain strong
* Market turbulence first real test of credit derivatives markets
Despite recent financial market turbulence, the global economy is still expected to perform well this year, but considerable uncertainty remains about the implications of the ongoing liquidity squeeze for financial markets and for the real economy, IMF Managing Director Rodrigo de Rato said.
"The principal risk is that financial market developments affect the real economy through declining asset prices, tightening financial conditions with a repricing of risk, and weaker confidence," de Rato said in a speech to a financial conference in Brazil on August 22.
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