IMF head: Current recovery of global economy - cyclical
Baku, Azerbaijan, Jan. 22
By Azad Hasanli – Trend:
Global economy has been accelerating, but its current recovery is cyclical, IMF head Christine Lagarde said.
Lagarde made the remarks during the presentation of the updated World Economic Outlook within the annual meeting of the World Economic Forum in Davos, Switzerland Jan. 22.
Despite the global GDP growth, she said, one must be cautious as many of those problems that led to the recent recession, remain.
“If good news and we should feel encouraged, but not satisfied because too many people are still left out of this growth,” Lagarde said. "It is when the sun is shining that you want to repair the roof. Despite the heavy snow in Davos, now is the time for world leaders to fix their roof.”
Lagarde then explained the reasons for this. “Firstly, policy makers should use these circumstances to make the structural or fiscal reforms that are too hard to make in more difficult times,” she said. “Secondly, growth needs to be more inclusive, not just across countries but within countries.”
“Finally, we need robust global collaboration to fight corruption, improve conditions for trade, stop tax evasion and prevent catastrophic climate change,” she said.
The IMF forecasts the economic growth at the level of 2.2 percent and 2.1 percent in the CIS countries in 2018 and 2019, respectively.
Global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point to 3.9 percent. The revision reflects increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes.