The global recovery is continuing but uneven and weaker than expected, and downside risks have increased, global financial chiefs said here Saturday.
"We are clearly in recovery globally but it is incomplete recovery," said Singaporean Finance Minister Tharman Shanmugaratnam at a briefing after the 30th meeting of the International Monetary and Financial Committee (IMFC).
"We've achieved something but there is more work to be done," said Shanmugaratnam, who chairs the IMFC, a ministerial committee of the International Monetary Fund.
Downside risks arise from the challenges associated with monetary normalization in some advanced economies, protracted below-target inflation in others, increased risk-taking in financial markets, and heightened geopolitical tensions, said the IMFC in a communique.
Besides addressing current risks, finance ministers and central bankers attending the IMFC meeting also focused on addressing future challenges and recognized that the implementation of structural reforms needed for tomorrow's growth was too slow.
"Our key concern is to look ahead so that we avert ... the very real risk of a prolonged period of subpar growth," said Shanmugaratnam. "We've got to pick up the pace."
Participants also reaffirmed their determination to implement the 2010 quota reforms.
"The implementation of the 2010 reforms remains our highest priority and we strongly urge the United States to ratify these reforms at the earliest opportunity," said the communique.
The IMFC usually meets twice a year, in September or October at the IMF and World Bank Annual Meetings and in March or April at the Spring Meetings. The committee discusses matters affecting the global economy and also advises the IMF on the direction of its work.