Lagarde Urges More Global Action For Growth, Jobs
In a statement issued yesterday, following the conclusion of the Group of 20 (G20) Finance Minister and Central Bank Governor Meeting in Ankara, Turkey, Ms. Lagarde stressed that there must be a continuous, but accommodative monetary policy in advanced economies; growth-friendly fiscal policies; and structural reforms to boost potential output and productivity.
The G20 meeting took place at a time of renewed uncertainty for the global economy amidst rising financial market volatility, declining commodity prices, depreciating currencies in some countries, and China’s growth transition.
Downside risks to the outlook, according to the IMF chief, have increased, particularly for emerging market economies. “The major challenge facing the global economy is that growth remains moderate and uneven. For the advanced economies, activity is projected to pick up only modestly this year and next. For the emerging market economies, prospects have weakened in 2015 relative to last year, though some rebound is projected next year. For both the advanced and emerging economies, productivity growth continues to be low,” she said.
Lagarde offered that it is also critical that the G20 increase their efforts to ensure a timely and effective implementation of their growth strategies.
“To keep the commitments made in Brisbane, more emphasis on implementation will be required between now and the G20 Summit in November when, along with the OECD, we will provide our assessment of progress toward the goal of achieving an additional two percent of GDP growth by 2018,” she said.