## IMF Managing Director Christine Lagarde Calls for Decisive and Collaborative Action by G-20 Leaders as Global Growth Moderates and Risks Increase

_IMF News, December 1, 2018_

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## Bibliographic details
- Published: December 1, 2018

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### Global growth outlook and risks
- Global growth "remains strong, but ... is moderating and becoming more uneven."
- "Pressures on emerging markets have been rising and trade tensions have begun to have a negative impact, increasing downside risks."
- "Choosing the right policy is therefore critical for individual economies, the global economy, and for people everywhere."

### Trade scenarios and impacts
- If "recently raised and threatened tariffs were to remain in place and announced tariffs were implemented, about three-quarters of a percent of global GDP could be lost by 2020."
- If "trade restrictions in services were reduced by 15 percent, global GDP could be higher by one-half of a percent."
- Policy implication: "There is an urgent need to de-escalate trade tensions, reverse recent tariff increases, and modernize the rules-based multilateral trade system."

### Debt and fiscal policy concerns
- Global debt level: "about $182 trillion by the IMF’s estimate."
- Guidance for highly indebted countries: "rebuild buffers and reverse procyclical fiscal policies."
- Transparency recommendation: "Increasing debt transparency, such as on the volumes and terms of loans, by borrowers as well as lenders, is as important as supporting debt sustainability."

### Policy recommendations presented to the G-20
- "First, fix trade—this is priority No. 1 to boost growth and jobs."
- "Second, continue to normalize monetary policy in a well-communicated, gradual, data-driven manner—and with due regard to potential spillover effects."
- "Third, address financial risks, using micro- and macro-prudential tools to tackle problems related to leveraged lending, deteriorating credit quality, and high exposure to foreign currency or foreign-owned debt."
- "Fourth, use exchange rate flexibility to mitigate external pressures, avoiding tariffs and other policies that could weaken market confidence."
- "Finally, eliminate legal obstacles to the participation of women in the economy. This is key to tackling high and persistent inequality, and would add to the growth potential of all G-20 countries."

### IMF governance and support to Argentina
- The G-20 "pledged to conclude the 15th General Review of Quotas by our Spring Meetings, and no later than the Annual Meetings in 2019."
- Commendation: "I would like to warmly congratulate President Macri and the Argentine authorities and team on their very effective leadership of the G-20 and on hosting the Leaders’ Summit in the wonderful city of Buenos Aires."
- IMF support note: "The IMF will continue to support the authorities in their endeavor."

*Press Release No. 18/450 — IMF Communications Department, December 1, 2018*

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## References

- [Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)
- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2018/12/01/pr18450-imf-managing-director-lagarde-calls-for-decisive-and-collaborative-action-by-g-20-leaders_