Wednesday Apr 04, 201212:55 AM GMT
IMF: Global economic recovery far from robust
International Monetary Fund (IMF) Managing Director Christine Lagarde speaks at a press conference in Washington on April 3, 2012.
Wed Apr 4, 2012 12:53AM
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The International Monetary Fund (IMF) has warned that the recovery of the global economy is far from robust.


Speaking at a press conference in Washington on Tuesday, the IMF Managing Director Christine Lagarde said that it was still too early to feel secure regarding the international economy, although, Europe was on the road to financial stability and the United States was seeing signs of better growth and lower unemployment.

She warned that the financial system in Europe was still ‘under heavy strain’ and that debt levels were ‘too high.’

"The recovery is still very fragile…What is crucial at this point is that policymakers use the breathing space to finish the job, and not lapse into complacency or insularity," Lagarde said.

"The ratio of Fund quotas to world GDP is significantly lower today than in the past. Sixty years ago, it was as much as 3-4 times higher. We've a lot of ground to make up."

She called on the US to have a leading role in tackling the European economic crisis as Washington had much to lose if the continent’s economy remained in trouble.

"If the European economy falters, the American recovery and American jobs would be in jeopardy."

Europe plunged into deep financial crisis in 2008. The crisis has continued to intensify in recent months.

The worsening eurozone debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, triggering incidents of social unrest and massive protests in many European countries.

In mid-March, the IMF head said that the world urgently needed more financial reforms due to the weak global economic conditions.

MHB/HN
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