Arab Today, arab today imf chief warns of mediocre growth becoming new reality
Last Updated : GMT 22:34:47
Arab Today, arab today
Arab Today, arab today

IMF chief warns of mediocre growth becoming 'new reality'

Arab Today, arab today

Arab Today, arab today IMF chief warns of mediocre growth becoming 'new reality'

Managing Director Christine Lagarde
Washington - XINHUA

Despite decreasing macroeconomic risks since last fall, the global economy continues to face a number of significant challenges, and the world should take measures to prevent the mediocre growth from becoming a "new reality", International Monetary Fund (IMF) Managing Director Christine Lagarde said Thursday.
While global growth is running at roughly the average of the last three decades, it is just not good enough to offset the lingering impact of the Great Recession, ranging from low growth and low inflation to high unemployment and high debt, Lagarde said in a speech delivered at the Atlantic Council ahead of the IMF/ World Bank spring meetings next week.
In advance of the release of the IMF's flagship World Economic Outlook report, the IMF chief expected the global growth this year to remain roughly the same as last year when it grew at a moderate rate of 3.4 percent. The growth for advanced economies will run slightly better than last year, while the forecasts for most emerging and developing economies are slightly worse than last year.
Last October, the IMF chief warned of the risk of "new mediocre ": low growth for a long time. "We must prevent the new mediocre from becoming the 'new reality'," said Lagarde on Thursday, adding that "all policy space and levers must be utilized."
She said euro area and Japan will need to continue monetary accommodation and calibrate fiscal policy to support the recovery without losing sight of debt sustainability over the medium term.
For emerging and developing oil-importers, Lagarde called on them to take the opportunity of low oil prices to reduce energy subsidies and save resources to boost growth-enhancing investments, such as infrastructure, education or health.
The IMF chief also warned of the rising financial risks amid the environment of low or even negative interest rates caused by the accommodative monetary policies.
"If the low interest environment persists, it can create solvency challenges for life insurers and defined benefit pension funds," she said.
The negative impact from the strong U.S. dollar is another risk the global economy is facing now, according to the IMF chief. " Business in emerging market economies (with large amounts of dollar-denominated debt) are wedged between a strong U.S. dollar, lower commodity prices, and higher borrowing rates," said Lagarde.
To leverage national initiatives for the benefit of the global community, the IMF chief called for giving emerging markets and developing countries greater weight and voice in global economic institutions.
In order to strengthen the resilience of the international financial architecture, the ratification of the IMF 2010 quota and governance reform by the U.S. Congress, a stronger collaboration with regional facilities and institutions, including China- proposed Asian Infrastructure Investment Bank (AIIB), and increasing the role of the Special Drawing Rights (SDRs) as a global reserve asset and facilitating the integration of dynamic emerging markets into the global economy will help meet the objective.
When asked about the AIIB in the Q&A session, Lagarde said the AIIB was part of the broader project by the Chinese authorities to build infrastructure projects, and to stimulate growth and economic activities not only within China but also with many neighbors along the Silk Road and along the Maritime Road.
It's a great initiative in the sense that its broad spectrum reflects the new landscape of the global economy with new key players, said the IMF chief.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today imf chief warns of mediocre growth becoming new reality Arab Today, arab today imf chief warns of mediocre growth becoming new reality

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday