{ "title": "Transcript of Press Conference by IMF Managing Director Christine Lagarde", "publication": "IMF News, April 20, 2017", "sourceUrl": "https://www.imf.org/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde", "canonical": "https://www.imf.org/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde", "overlayPath": "/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/index.md", "summary": "Global growth forecasts from the WEO cited:", "publishDate": "2017-04-20", "sections": [ { "heading": "Global outlook and forecasts", "content": "- Global growth forecasts from the WEO cited:\n - 2017 growth forecast: 3.5 percent\n - 2018 growth forecast: 3.6 percent\n - 2016 growth: 3.1 percent\n- IMF view: global economy is \"picking up momentum\" but risks remain \"tilted to the downside,\" including political uncertainty.\n- Participation at the Spring Meetings: 189 representatives of the membership, Finance Ministers, Governors of Central Banks." }, { "heading": "Policy priorities and recommended tools", "content": "- IMF’s three‑pronged approach to sustain growth:\n - Fiscal policy\n - Monetary policy\n - Structural reforms\n- Priority objectives from the Global Policy Agenda:\n - Maintain growth momentum\n - Reinvigorate productivity (boosting innovation and trade)\n - Make growth more inclusive within countries, across countries, and between generations\n- Specific policy actions recommended within countries:\n - Make tax and benefit systems more equitable\n - Boost high‑quality infrastructure investment\n - Mitigate structural change impacts (examples provided):\n - Minimum wages (raising them when too low)\n - Expanding in‑work tax credit (e.g., Earned Income Tax Credit)\n - Retraining, job search, labor‑market specific policies, relocation support\n - Revisiting housing policies to facilitate labor mobility\n- Intergenerational policy focus:\n - Guard against excessive debt burden\n - Address unsustainable pension schemes\n - Maintain infrastructure and mitigate climate change impacts\n- Cross‑country cooperation priorities:\n - Reduce excessive external imbalances\n - Clamp down on tax evasion and tax avoidance\n - Deliver the Sustainable Development Goals to support low‑income countries\n - Avoid \"self‑inflicted wounds\" such as restrictions, subsidies, and trade distortions" }, { "heading": "Productivity, innovation, and trade", "content": "- IMF emphasis: two clear forces that drive productivity up are innovation and trade.\n- Trade status and concerns:\n - Trade is \"picking up\" and expected to continue increasing, but the environment is imperfect and \"room to improve\" exists.\n - Cited WTO‑related indicators:\n - Noncompliance with trade commitments by G20 countries rose from \"a little over 2 percent\" to 6.5 percent between 2015 and 2016\n - About 3,000 [new restrictive rules] since 2008\n - IMF supports cooperative, multilateral forums and dialogue to improve the trading system and preserve trade as an engine of growth." }, { "heading": "Surveillance, External Sector Report, and currency monitoring", "content": "- Surveillance is one of IMF’s three missions (with lending and capacity development).\n- External Sector Report (ESR):\n - Upcoming release: next July (the ESR will assess the external position of 29 countries)\n - ESR informs bilateral Article IV surveillance for those 29 countries\n- Currency monitoring:\n - The ESR and EBA are evolving, sophisticated instruments that require continual improvement and judgmental inputs.\n - IMF does not consider it its mission to declare whether a country \"is or is not a market economy.\"" }, { "heading": "Country‑specific assessments and recommendations", "content": "- China\n - Observations:\n - Positive recent economic performance partly due to stimulus\n - Rebalancing from investment toward consumption and services\n - Rebound in export activity as global demand picks up\n - IMF recommendations:\n - Specific recommendations on credit growth control, and reining in the housing sector (growth in housing continues despite efforts)\n\n- United States / Trump Administration\n - IMF stance:\n - Seeks cooperation and dialogue with the Administration\n - IMF is not a trade organization but is concerned with trade as a growth engine\n - Emphasis on level playing field, no distortive or protectionist measures\n\n- CEMAC (Central African Economic and Monetary Community)\n - Facts:\n - CEMAC comprises six countries\n - Two of the six are in IMF programs: Central African Republic and Chad\n - Recommendations:\n - Policies and reforms in the monetary area should be consistent and collective across the six countries\n - International support needed from IMF, African Development Bank, World Bank, and bilateral partners to address the double challenge of falling commodity prices and security issues\n\n- Egypt\n - IMF assessment:\n - Egyptian program described as \"very courageous\" with major reforms underway\n - Critical issue highlighted: inflation needs to be addressed head‑on\n - Program context:\n - The program is \"the second largest financial program that we have at the moment\"\n - Importance of public endorsement of reforms for program success\n - Question referenced: timing/details for second tranche of the $12 billion (not answered with a date in transcript)\n\n- India\n - IMF adjustments and observations:\n - Growth projection for 2017: 7.2 percent\n - Demonitization caused a slight downward revision; note that demonetization had been \"remedied at about 75 percent\" (latest March figure cited)\n - Positive view of GST implementation as a courageous reform that will substitute state taxes with a federal tax and require a digital platform\n - Supportive view of new Bankruptcy Law as important for corporate and banking sector reform\n\n- Brazil\n - Status and outlook:\n - Brazil has come out of a major contraction in 2016; IMF forecasts show no negative forecasts for 2017 in the set discussed\n - Policy assessment: welcome fiscal policy stance (intention to reduce debt) and monetary policy response to reduced inflation\n - Structural reforms and addressing corruption cases are key to unlocking potential; transition time may be needed\n\n- Germany and global imbalances\n - IMF view:\n - Germany's external imbalance within the Eurozone should be addressed\n - Part of Germany’s surplus is justifiable (aging population), but not all; reduction of the current account surplus, particularly the trade balance, is desirable\n - Positive notes: Germany increasing investment in child care centers, refugee integration, infrastructure; recommended investment in broadband\n\n- Greece\n - IMF precondition for program involvement:\n - Program must \"walk on two legs\": sustainable reforms and debt sustainability\n - Status:\n - Progress on reforms (tax reform, pension reform) but details need to be finalized\n - Debt Sustainability Analysis depends on a \"reasonable\" primary surplus objective to determine the amount of debt restructuring needed\n\n- Tax transparency and Panama Papers follow‑up\n - IMF observations:\n - Post-Panama/Bahamas Papers, multiple jurisdictions have undertaken tax pursuits, investigations, and controls to recover lost revenue\n - IMF supports BEPS, automatic exchange of information, and an international tax platform established with Bank, UN, and OECD\n - IMF provides about one third of its total capacity development on these tax issues, with a focus on helping low‑income countries raise domestic revenue\n\n- Mexico\n - IMF assessment:\n - Commends solid policies from monetary authorities and Secretary of Treasury\n - Noted higher oil prices and related inflation; the monetary tightening response was appropriate\n - Mexico continues to satisfy the requirements of the Flexible Credit Line; IMF sees no reason to challenge that status\n\n- Indonesia and inequality\n - Growth forecasts cited:\n - Current forecast: 5.1 percent\n - Next year forecast: 5.3 percent\n - Policy recommendations to address inequality:\n - Strengthen fiscal policy and revenue collection (example: Indonesia’s tax amnesty to repatriate revenues)\n - Continue structural reforms with vigor to create fiscal space for redistribution and inclusion" }, { "heading": "Key statistics and figures cited", "content": "- Global growth: 3.5 percent (2017), 3.6 percent (2018), 3.1 percent (2016)\n- WEO forecasts and commentary referenced (Maury Obstfeld)\n- India growth forecast: 7.2 percent (2017)\n- Demonitization remediation: \"about 75 percent\" (latest March figure)\n- ESR coverage: 29 countries\n- CEMAC: six countries; two in IMF programs (Central African Republic and Chad)\n- Panama/WTO/trade metrics:\n - Noncompliance by G20: from \"a little over 2 percent\" to 6.5 percent between 2015 and 2016\n - About 3,000 [new restrictive rules] since 2008\n- IMF capacity development: about a third of total on international tax platform work\n- Mexico: reference to $12 billion loan (question about second tranche)\n- Indonesia growth forecasts: 5.1 percent, 5.3 percent\n\nTranscript of Press Conference by IMF Managing Director Christine Lagarde, April 20, 2017 — IMF Communications Department\n\n---\n\n\n References\n\n- People's Republic of China and the IMF\n- Arab Republic of Egypt and the IMF\n- Brazil and the IMF\n- Germany and the IMF\n- Greece and the IMF\n- Indonesia and the IMF\n- Mexico and the IMF\n- IMF Surveillance -- A Factsheet\n- Transcripts\n- PRESS CENTER\n- If you look at the recent report that was published,\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde" } ], "bullets": [ "[Markdown version](/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/index.md)", "[Structured JSON version](/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/index.json)", "[Bundle manifest](/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/bundle-manifest.json)", "Published: April 20, 2017", "Global growth forecasts from the WEO cited:", "IMF view: global economy is \"picking up momentum\" but risks remain \"tilted to the downside,\" including political uncertainty.", "Participation at the Spring Meetings: 189 representatives of the membership, Finance Ministers, Governors of Central Banks.", "IMF’s three‑pronged approach to sustain growth:", "Priority objectives from the Global Policy Agenda:", "Specific policy actions recommended within countries:", "Intergenerational policy focus:", "Cross‑country cooperation priorities:", "IMF emphasis: two clear forces that drive productivity up are innovation and trade.", "Trade status and concerns:", "Surveillance is one of IMF’s three missions (with lending and capacity development).", "External Sector Report (ESR):", "Currency monitoring:", "China", "United States / Trump Administration", "CEMAC (Central African Economic and Monetary Community)", "Egypt", "India", "Brazil", "Germany and global imbalances", "Greece", "Tax transparency and Panama Papers follow‑up", "Mexico", "Indonesia and inequality", "Global growth: 3.5 percent (2017), 3.6 percent (2018), 3.1 percent (2016)", "WEO forecasts and commentary referenced (Maury Obstfeld)", "India growth forecast: 7.2 percent (2017)", "Demonitization remediation: \"about 75 percent\" (latest March figure)", "ESR coverage: 29 countries", "CEMAC: six countries; two in IMF programs (Central African Republic and Chad)", "Panama/WTO/trade metrics:", "IMF capacity development: about a third of total on international tax platform work", "Mexico: reference to $12 billion loan (question about second tranche)", "Indonesia growth forecasts: 5.1 percent, 5.3 percent", "[People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)", "[Arab Republic of Egypt and the IMF](http://www.imf.org/external/country/EGY/index.htm)", "[Brazil and the IMF](http://www.imf.org/external/country/BRA/index.htm)", "[Germany and the IMF](http://www.imf.org/external/country/DEU/index.htm)", "[Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm)", "[Indonesia and the IMF](http://www.imf.org/external/country/IDN/index.htm)", "[Mexico and the IMF](http://www.imf.org/external/country/MEX/index.htm)", "[IMF Surveillance -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[Transcripts](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[If you look at the recent report that was published,](http://www.imf.org/en/publications/staff-discussion-notes/issues/2017/04/03/gone-with-the-headwinds-global-productivity-44758)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/index.md", "json": "/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/index.json", "bundleManifest": "/en/news/articles/2017/04/20/tr042017-press-conference-by-imf-managing-director-christine-lagarde/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T20:45:29.077Z" }