IMF: global economy shows
more positive momentum, warns of inward-looking policies
WASHINGTON, March 15 (PNA/Xinhua) -- International Monetary Fund (IMF)
on Tuesday said the global economy is showing more positive momentum, but
warned that inward-looking policies and sharp tightening in global financial
conditions could threaten the growth momentum.
"Near-term global growth is expected to pick up, reflecting a firming-up of
activity in advanced economies, an anticipated shift in the macroeconomic
policy mix in the United States, and stabilization in stressed emerging
economies," said the IMF in its G20 surveillance note released ahead of the
G20 finance ministers and central bank governors' meetings on March 17 and
18 in Germany.
Outlook has improved in advanced economies, although their growth prospects
in the medium-term remain subdued. They will continue to suffer from global
financial crisis legacies, such as high corporate debts and low productivity
growth, said the IMF.
Emerging economies remain the main driver of the strengthening global
outlook, as they continue to contribute more than three-quarters of total
global GDP growth in 2017.
According to IMF's World Economic Outlook report released in January, the
global economy is expected to grow 3.4 percent in 2017 and 3.6 percent in
2018, up from 3.1 percent in 2016.
Christine Lagarde, managing director of the IMF, said Tuesday in an IMF blog
that the global economy has reached a turning point at least for now.
The IMF also warned of the risks of inward-looking policies which could
disrupt global trade and a sharp tightening in global financial conditions.
A stronger U.S. dollar and rising U.S. interest rates could lead to a
sharper-than-expected tightening in global financial conditions, which could
potentially put stress on some emerging economies and low-income countries,
In order to sustain the growth momentum, IMF called on G20 members to uphold
rules-oriented open multilateral trade framework, complete international
financial regulatory reform and strengthen the international financial
Lagarde also called for measures to boost inclusive growth, including
training lower-skilled workers and retooling of income policies and tax