Global economic situation remains uncertain, says IMF
The ongoing uncertainty in the economic policies of developed nations is restraining investment in these countries and slowing global growth, while a decline in activity in emerging markets is making it more difficult to achieve balance in the global economy, the IMF said in a communiqué following a meeting of its International Monetary and Finance Committee (IMFC) in Tokyo.
"Global growth has decelerated and substantial uncertainties and downside risks remain. Key policy steps have been announced, but effective and timely implementation is critical to rebuild confidence. We need to act decisively to break negative feedback loops and restore the global economy to a path of strong, sustainable and balanced growth," the IMF said in the communiqué.
"Advanced economies should deliver the necessary structural reforms and implement credible fiscal plans. Emerging market economies should preserve or use policy flexibility as appropriate to facilitate a response to adverse shocks and support growth," the IMF said.
"We welcome the directions set forth in the Managing Director's Global Policy Agenda and share its emphasis on the need to address the current crisis and build a strong foundation for future growth. Policies for jobs and growth, debt sustainability, repair of financial systems, and reducing global imbalances are key priorities. We will review progress on implementing these measures at our next meeting," it said.
Russian Finance Minister Anton Siluanov said after the IMFC meeting: "There are no grounds for complacency, the IMF's forecast for the world economy has been lowered, in Europe the adopted decisions should take effect only next year. Therefore the general state of uncertainty and strain was noted."
