IMF Tasks G20 Leaders On Global Economy

Managing Director International Monetary Fund (IMF), Ms. Christine Lagarde has called on G20 leaders to ensure that they implement policies that would hasten global economic recovery.

Ms. Lagarde made the appeal at the final day of the Group of 20 Leaders’ summit that took place in St. Petersburg, Russia.

According to Ms. Lagarde; “As noted by the Leaders, coordinated action has done much to stabilize the world economy and the financial system. Leaders also recognize that much remains to be done to get the world economy working better. Global growth remains subdued, its underlying dynamics are changing, and market volatility and stability risks persist.

“Just as some advanced economies have begun to gather momentum, many emerging markets are slowing, and policy makers are grappling with challenges arising from domestic and external developments. Unemployment, in particular among young people, also remains high in many countries,” the IMF MD insisted.

Ms. Lagarde is optimistic that “the St. Petersburg Action Plan that stresses the importance of cooperation as countries address these challenges of promoting global growth, jobs, and financial stability.

“The action plan recognizes the need for fiscal consolidation to reflect economic conditions, the need to push forward on financial oversight and regulation, and the importance of comprehensive structural reforms to support growth, she said.

The IMF MD noted that it is important that monetary policy remain supportive where appropriate saying that “I am pleased that the G-20 recognizes the need to ensure exit from unconventional monetary policy.

“Both advanced economies and emerging markets will have to address their domestic challenges in order for spillovers to be effectively managed,” Ms. Lagarde cautioned.

The IMF will continue to engage in these areas given their significant implications for the global economy.

“Lastly, I welcome G-20 support for completing the IMF’s 2010 quota reform agreement, and I urge the few remaining countries to quickly ratify the measures necessary to implement this important agreement. Completing this reform would contribute greatly to the evolution of IMF governance and help ensure that it better reflects the global economic reality,” she added.

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