Statement by the Managing Director to the International Monetary and Financial Committee on the Global Economy and Financial Markets

Publication Date:

October 7, 2010

Electronic Access:

Free Full Text (PDF file size is 219 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

The recovery remains fragile and uneven. In many advanced economies, activity is still sluggish and unemployment high, while legacy problems in the financial system remain unresolved. Activity is more robust in many emerging and developing economies. However, their prospects also depend on a healthy, broad-based recovery among the advanced economies, owing to deep real and financial linkages. The key policy challenge is to effect a smooth transition from public- to private-sector-led growth in many advanced economies, and from external to domestically driven growth in key emerging economies. While short-term macroeconomic policies are broadly appropriate, completing the two rebalancing acts will require tackling the medium-term fiscal, financial, and structural challenges raised by the crisis. Without such reforms, growth could sputter, with grave economic and social consequences.

Series:

Policy Papers

Subject:

English

Publication Date:

October 7, 2010

Price:

Free

Format:

Paper

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