St. Kitts and Nevis (WINN); International Monetary Fund Managing Director Christine Lagarde has given a glimpse into the Fund’s midterm assessment of the global economy, ahead of next week’s delivery of the World Economic Outlook Report for April 2017.
Speaking at a Global Economics and governance meeting in Brussels On Wednesday (Apr 12), the IMF Chief said the outlook in terms of economic growth in both advanced and emerging and developing economies, is more optimistic than at the October 2016 assessment.
“What I would like to do is give you a quick view of the midterm outlook. The good news overall is that after six years of disappointing growth the world economy is gaining momentum as cyclical recovery holds out the promise of more jobs, higher incomes, and greater prosperity going forward.
“For advanced economies, the outlook has improved with stronger manufacturing activity…as far as the emerging and developing countries are concerned, their current situation bodes rather well for global growth and we believe that they will continue to deliver probably about, if not more than three quarters of global growth in 2017 and we believe that that movement will persist in 2018.”
Lagarde did not reveal any figures ahead of the April meetings between the IMF and World Bank Groups in Washington DC, however the October assessment had projected global growth would recover to 3.4 percent in 2017.
Against the backdrop of the uptick in economic growth, Lagarde reminded that there are clear downside risks, such as political uncertainty and tighter global financial conditions, that could trigger disruptive capital outflows from emerging and developing economies.
This, she said, suggests that there is no room for complacency when it comes to economic policies if the recovery is to continue.
“These risks actually lead us to the conclusion that there can be no complacency, and the policy mix and the policies that have been adopted in the last few years which have led to that cyclical recovery that we’re observing at the moment should certainly not be wasted; and that’s what I mean by the policy of no self inflicted wounds.”