IMF Christine Lagarde Calls for Broad-based Policy Effort to Reinvigorate Growth

cl2July 24, 2016

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today at the conclusion of the Group of 20 (G20) Finance Ministers and Central Bank Governors Meeting in Chengdu, China:

“We met at a time of political uncertainty from the Brexit vote, and continued financial market volatility. Lackluster growth of the post-crisis era continues, with weak demand in advanced economies and difficult transitions to a self-sustained growth model in many emerging markets. As a result, global growth has been revised downward slightly for both 2016 and 2017.

“Our discussions were taking place in a spirit of cooperation and willingness to tackle difficult issues. There was a consensus around the table that more needs to be done to share the benefits of growth and economic openness broadly within and among countries.

“In this context, I noted that the G20 members are taking actions to foster confidence and support growth. I welcome their determination to use all policy tools —monetary, fiscal and structural— individually and collectively to achieve strong, sustainable, balanced and inclusive growth. Structural reforms are particularly critical, as recent IMF work shows that well-designed structural reforms can lift both short- and long-term growth and make it more inclusive. Further trade liberalization is also crucial to bolster productivity and global growth, while taking steps to ensure the gains from trade are shared widely.

“The G20 members also emphasized the importance of further strengthening the International Financial Architecture and, in that context, a resilient Global Financial Safety Net (GFSN) with a strong and adequately resourced IMF at its center.

“During my visit to China, I also took part in the 1+6 roundtable hosted by the Premier Li Keqiang in Beijing where we met and discussed global developments and China’s historical transition that is currently underway. I would like to commend the authorities for the ambitious reform agenda and the significant progress they have made.

“I would like to thank Finance Minister Lou Ji-Wei and Governor Zhou Xiaochuan, the Chinese authorities, and the people in Chengdu for their generous hospitality and superb organization. I look forward to the Hangzhou G20 Summit in September.”