IMF Remains Confident in Global Economic Growth

Forex News

IMF Managing Director Christine Lagarde spoke in Hong Kong after attending the Boao Forum in China, where she noted the global economic recovery. In her speech, Lagarde said that the main priorities of the world economy are to avoid protectionism, protect financial risk and promote long-term growth. The IMF chief was speaking as a trade conflict between the United States and China is creating significant uncertainty for businesses and their global supply chains.

The International Monetary Fund is optimistic about the prospects for global growth, but warns about possible negative consequences due to the fading of fiscal incentives and higher interest rates. According to her, politicians need to assume equal conditions and resolve disputes without using exceptional measures, and tax instruments and structural reforms are the best way to cope with global imbalances.

The IMF new analysis showed that global debt had reached an all-time high of $164 trillion, 40% higher than in 2007, with China accounting for just over half of that increase. So that, economies needed to reduce government deficits, strengthen fiscal frameworks and place public debt on a gradual downward path.