WASHINGTON
A top official of the International Money Fund urged international cooperation against an economic downturn warning of the risk of low growth rate for global economies in the coming years.
Christine Lagarde, the managing director of the IMF, who spoke at a conference at John Hopkins University, explained that the modest recovery from the economic crisis was still too weak to draw comfort.
“Unless countries come together to take the right kind of policy measures, we could be facing years of slow and sub-par growth - well below the solid, sustainable growth that is needed to create enough jobs and improve living standards into the future,” Lagarde said.
She defined three obstacles that need to be addressed in order to support growth; prolonged low-inflation risk in advanced economies which can suppress demand and output and stifle growth and jobs, heightened market volatility associated with the tapering of quantitative easing in the U.S which limits the flow of cheap dollars to countries with weaker economies, and the rise of geopolitical tensions such as Crimea and Syria which supress the free flow of capitals between countries.
“Recovery is taking hold but is too slow and it faces several obstacles along the road. Bold policy steps can overcome these obstacles and take the global economy to the next level of more rapid and sustainable growth,” she said.
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