IMF calls on members to cooperate to improve global economy

The International Monetary Fund (IMF) called on all players to cooperate closely to improve the global economy Thursday before 2012 IMF annual meetings as the global economy recovered slowly than the IMF’s forecast in April due to many uncertainties.

“The biggest difference from the spring meeting, is the IMF found the slowdown of growth is not only affecting the advanced economies, but also the emerging markets for the correlated effect, particularly in Asia,” Christine Lagarde, IMF Managing Director, told a press conference.

Right actions with long-term view have been done by some central banks in euro area, and IMF received the good signals and consider them a good opportunity to seize as much uncertainties, in every corner of the world, preventing the decision makers from investing, creating jobs and developing values.

Speaking of the emerging markets, Lagarde said, there are also many challenges, so they need to keep a close watch on the vulnerabilities of both of the domestic market and the external market.

Looking into the future, IMF suggested there are four key policies for all members to do to make the economy keep going forward.

Firstly, continue to complete the financial sector reform making the finical sector safer, as the safety have not improved much yet than five years ago. And then, countries should deal with the legacy of high debt, especially in the advanced economies, which have extremely high level. Policy makers also need to expand the employment on creating the condition for economic growth, because the jobless rate among young people is unacceptable. Finally, all members of IMF should face the global unbalance, which is the topic has been talking for a long time.

Lagarde said the annual meetings of IMF could provide a broad platform for players and cooperation is the thing most needed, because the global economy is a cooperative game.


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