IMF Survey : Lagarde Calls for New Recipe for Stronger Growth

IMF News, October 8, 2015

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Policymakers in all countries must "refine and upgrade their economic policies to boost growth and reduce global uncertainty."
The IMF’s Global Policy Agenda outlines challenges, policy priorities for the IMF’s 188 members, and what the Fund can do to support members.
The IMF’s AIM is to be even more Agile, Integrated and Member-focused to support members in the transition to durable, inclusive growth.

Global growth is expected to be weaker this year than last, at 3.1 percent, with only a modest acceleration to 3.6 percent in 2016.
“Such growth prospects are not enough to significantly reduce global unemployment and further reduce poverty levels.”
Factors affecting the outlook include: the prospect of rising U.S. interest rates, China’s slowdown, and the rapid drop in commodity prices.
With the right policies, strong leadership, and global cooperation, these transitions “can be managed.”

First: Manage the economic transitions.
- Policy recipe to include demand support, financial stability measures, structural reforms—and specific policy upgrades.
Second: Watch for spillover effects.
- Central banks in advanced economies should consider risks of spillovers from their policy decisions.
- Emerging economies should address the buildup of corporate leverage and foreign debt.
Third: International cooperation.
- Cooperation is “indispensable” for issues from economic spillovers to refugee crises to international development to climate change; “no country can go it alone.”

The IMF’s AIM: to be even more Agile, Integrated and Member-focused to support its 188 member countries.
Under this approach the Fund will:
- Help members respond to tighter and more volatile financial conditions.
- Support implementation of effective macro-structural reforms.
- Better integrate policy advice across sectors and regions.
- Leverage synergies between surveillance and capacity advice.
- Deepen engagement with members, bolster knowledge management, and ensure faster feedback to policymakers.

Christine Lagarde presented the Global Policy Agenda at the opening press conference in Lima, Peru, ahead of the 2015 IMF-World Bank Annual Meetings.
The Global Policy Agenda will be discussed by the International Monetary and Financial Committee.

IMF Survey : Lagarde Calls for New Recipe for Stronger Growth, October 8, 2015.