IMF chief Christine Lagarde has urged the policymakers across the member nations to take benefit of the global broad-based economic recovery and take decisions with an aim to make the recovery “sustainable”. She too, just as IMF counsellor Tobias Adrian had emphasised, asked policymakers not to be complacent.
“Our suggestion is that it is not time to be complacent; it is time to take those policy decisions that will actually enable more people and more countries to benefit from that recovery that should be made sustainable,” Lagarde told reporters at the annual meeting of the IMF and the World Bank.
“And that is the question that we will put to the policymakers, to the finance ministers, and to the governors of the central banks who will be attending the meetings,” she said.
Noting that the recovery was stronger and much more broad-based than in the recent years, Lagarde said the International Monetary Fund (IMF) expects higher global growth this year (3.6 per cent) and in the next (3.7 percent).
“So in both the cases, 0.1 percentage points higher than our July projection and certainly much higher than the 3.2 growth that we had in 2016,” she said.
Last year, 47 countries experienced negative growth on a per capita basis, including many small and fragile economies.
“Far too many people across all types of economies are seeing their aspirations limited by the impact of technology and the repercussions of excessive income inequality,” she said, adding that is leading to “growing political tensions in many places and increased skepticism about the benefits of globalisation”.
On the fiscal front, the IMF chief advised the countries to make investments in critical areas like infrastructure, education, and allowing women to access the labor market.
Lagarde said the structural reforms will vary from country to country and will be based on reform of the labor market, reform of access to the service markets, removing the rents that sometimes cripple those markets, removing barriers.
(With inputs from PTI)