IMF chief amps up call to boost global growth as risks increase
Apr 8, 2016 International Monetary Fund Managing Director Christine Lagarde recently called for stronger action in boosting global economic growth. She also warned that without decisive action, downside risks were increasing.
Speaking at Frankfurt’s Goethe University, Lagarde prescribed several ways to circumnavigate the situation.
“We are actually growing and that is good news indeed. The not so good news is that that recovery is too weak, too fragile and its durability is at risk. Now of course we have made progress since the great financial crisis. But because that growth has been too slow, too fragile a lot of people are just not feeling it.”
She went on to point out China’s effective business model.
“China, as I said, is shifting its business model and as a result, is having good growth. You know, 6.5 (percent growth) is nothing to be ashamed but it’s significantly lower than what they had experienced and what their suppliers and the supply chain had experienced. Russia and Brazil are experiencing significant downturns, more so than what we had expected. And that is also true for the Middle East which is the prime region which is suffering from the low oil prices. There are also quite a few African countries that are suffering as much as the Middle East countries and that are less talked about. India by contrast, in that category, remains a bright spot with strong growth and rising real income.”
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