Global economic growth too slow: IMF

Global economic growth too slow: IMF

Thu, 03 Apr 2014 08:48:35 GMT

The head of the International Monetary Fund (IMF) has warned that the overall global economic growth is still “too slow and weak,” urging leading countries to embrace bold policy steps to a faster recovery process.

Speaking at the School of Advanced International Studies of Johns Hopkins University in Washington DC on Wednesday, Christine Lagarde expressed dissatisfaction with the pace of the global economy’s recovery from recession.

“The global economy has stabilized since the onset of the financial crisis, but the recovery is too weak for comfort,” she said.

Lagarde’s remarks came ahead of meetings between the IMF and the World Bank officials scheduled for next week.

The IMF chief also warned that without “brave action” the current low growth could fall into a “trap” for economies across the world.

“Unless countries … take the right kind of policy measures, we could be facing years of slow and sub-par growth – well below the solid, sustainable growth that is needed to create enough jobs and improve living standards into the future,” she added.

Moreover, Lagarde urged countries to take bolder steps in order to prevent the type of crisis that affected the global financial system some six years ago.

Europe was particularly affected by the downturn in early 2008. The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered incidents of social unrest and massive protests in many European countries.

Leave a Reply