Global economy reached a turning point despite uncertainties: IMF chief

ABU DHABI, — Global economic growth is gaining momentum around the world and there are signs that the global economy has reached a turning point, even though uncertainties remain, according to a statement issued today by Christine Lagarde, Managing Director of the International Monetary Fund (IMF), at the conclusion of the Group of 20 (G20) Finance Ministers and Central Bank Governors Meeting in Baden-Baden, Germany.

“Strong monetary, fiscal and structural policies matter more than ever for what comes next. Global cooperation and pursuing the right policies can help achieve strong, sustained, balanced, and inclusive growth, while the wrong ones could stop the new momentum in its tracks,” she said in a statement posted on IMF’s website.

The meeting, she noted, showed once again that the G20 provides a critical platform for major economies to work together within an established framework.

Lagarde reaffirmed the IMF’s readiness to contribute to enhancing global understanding and cooperation in line with our mandate, including through vigorous exchange rate surveillance and analysis of global imbalances.

“As global financial conditions may tighten, we are committed to supporting our membership in the management of risks stemming from excessive capital flow volatility. We will enhance our monitoring tools and stand ready to provide policy advice, including on macro-prudential policies, as well as capacity building and financial support as warranted,” the IMF chief said.

She strongly welcomed the proposed compacts between African and G20 countries to build capacity and unlock investment flows.

“All five countries in the first wave have Fund-supported arrangements. We will work closely with the authorities to strengthen their macroeconomic frameworks and will step up the provision of technical assistance,” Lagarde said, and noted that she looks forward to the Hamburg G20 Summit in July.

Source: Emirates News Agency