## Transcript of IMF Press Briefing _IMF News, March 21, 2019_ ## Source details **Canonical URL:** [Transcript of IMF Press Briefing](https://www.imf.org/en/news/articles/2019/03/21/tr032119-transcript-of-imf-press-briefing) ## Other formats - [Markdown version](/en/news/articles/2019/03/21/tr032119-transcript-of-imf-press-briefing/index.md) - [Structured JSON version](/en/news/articles/2019/03/21/tr032119-transcript-of-imf-press-briefing/index.json) - [Bundle manifest](/en/news/articles/2019/03/21/tr032119-transcript-of-imf-press-briefing/bundle-manifest.json) ## Bibliographic details - Published: March 21, 2019 --- ### Briefing logistics and announcements - Transcript date: March 21, 2019. - Press officer: Gediminas Vilkas. Phone: +1 202 623-7100. Email: MEDIA@IMF.org. - Briefing embargo: embargoed until 10:30 a.m., that's Washington time. - Spring Meetings schedule and IMF release timeline: - April 2: Managing Director Christine Lagarde to deliver curtain raiser speech at the U.S. Chamber of Commerce at 9:30 in the morning, Tuesday, April 2. - April 3: Release of Analytical Chapters (issue-focused chapters) of the World Economic Outlook, including chapters on trade and the concentration of corporate power in some sectors. - April 4: Release of Analytical Chapters for the Global Financial Stability Report (including a chapter on housing prices) and the Analytical Chapter of the Fiscal Monitor on the fiscal costs of corruption. - April 9: Release of the World Economic Outlook; presented by Economic Counselor and Director of Research Gita Gopinath. - April 10: Release of the Global Financial Stability Report with Tobias Adrian and the Fiscal Monitor led by Vitor Gaspar. - Additional upcoming speeches and missions: - Christine Lagarde: opening remarks at the Peterson Institute next Monday (on international tax); keynote at Banque de France Symposium marking the 20th anniversary of the euro on March 28; visit to University Paris-Dauphine on March 28. - David Lipton (First Deputy MD): speech in Lisbon at the Bank of Portugal IMF Conference on March 25 (on Euro Area reform). - Tao Zhang (Deputy MD): in China from March 26 to 31 to represent the Fund at the Boao Forum and participate in Chengdu for the Inter-American Development Bank Annual Meeting. - Access: Analytical Chapters will be accompanied by briefing materials, webinars, and access to authors; registration for Spring Meetings available on IMF website. ### Humanitarian and emergency engagement - Cyclone Idai: Christine Lagarde expressed solidarity with the people of Mozambique, Zimbabwe, and Malawi in the aftermath of Cyclone Idai; condolences to affected families and friends. - Operational response: An IMF staff team is now in Maputo to evaluate options for possible IMF support. ### Country assessments, program status, and policy guidance - India - Growth: India has been "one of the world's fastest growing large economies," with growth averaging about 7 percent over the past 5 years. - Policy priorities and IMF recommendations: - Accelerate the cleanup of banks and corporate balance sheets. - Continue fiscal consolidation, both at center and state levels. - Maintain reform momentum on structural reforms in factor markets (labor, land) and enhance the business climate to achieve faster and more inclusive growth. - Forthcoming analysis: More detail to be provided in the World Economic Outlook released on April 9. - Venezuela - Situation: The country faces a very difficult situation with enormous economic and humanitarian tolls. - IMF stance: The IMF "stands ready to help once the question of official recognition of the government there has been clarified." - Governance and process considerations: - Prospective engagement would be predicated on guidance from the international community and IMF membership of 189 countries. - At the time of the briefing there was "not yet clarity on that guidance." - No schedule or date for an IMF Executive Board meeting on the issue was available; no confirmation of specific consultations referenced by journalists. - United States - Federal Reserve policy: IMF supports the Fed's decision "to be patient in determining future changes to the Federal funds rate" given global uncertainties; emphasizes data dependence and clear communication to minimize market disruptions. - Macroeconomic outlook: The U.S. outlook described as "strong" with historically low unemployment, high consumer and business confidence, and aided by the fiscal expansion underway. - Further details: To be updated in the World Economic Outlook. - Argentina - Program status: Staff-level agreement on the program reached; Board approval expected "in the next few weeks" following standard sequencing; full staff report to be published at that time. - Fiscal assessment: - Authorities met the 2018 primary deficit target. - IMF view: "Achieving the zero primary deficit this year will require a tight control of primary spending" and will place Argentina's debt to GDP on a decisive downward path. - Clarification: The zero primary deficit target is "not a new requirement or a new target" but aligns with the authorities' stated objective for 2019. - Social protection: IMF emphasizes it is "critical that the high-impact, social spending programs are preserved" during fiscal consolidation. - Political context: IMF states it supports member countries regardless of political complexion and "stands ready to work with any Argentine government." - Turkey - Economic assessment: Turkey’s economy is "slowing sharply" with underlying vulnerabilities remaining. - IMF advice: Authorities are urged "to pursue a comprehensive set of policies to credibly and consistently address the key underlying imbalances." - Recent actions: IMF staff assessing the possible impact of recently announced tax changes. - Greece - Progress: Reforms implemented have put Greece "on a much better path in terms of sustainability of the economy and growth"; credit given to Greek authorities and people for perseverance. - IMF engagement: No financing program currently with Greece, but the Fund will support through analysis, research, and capacity development. - Early repayment of IMF loans: Decision is for Greek authorities to make in consultation with other official creditors "where appropriate"; early repayment would reduce interest costs but is a sovereign choice. - Haiti - Program status: A staff-level agreement on a potential program exists but IMF cannot bring it forward to the Board until there is clarity on formation of a new government and the introduction of a budget. - IMF request: Resolution of policy and political uncertainties is needed for program processing to resume. - Tunisia - Mission: IMF staff team to be in Tunisia next week for the fifth review of Tunisia’s economic reform program. - Assessment: Tunisia has made important progress and is experiencing a modest recovery, but vulnerabilities remain: deficits and debt are large, inflation is high, and foreign exchange reserves are low. - IMF recommendations: Strengthen macroeconomic policies and reforms in support of job creation and growth; prioritize social protection for the vulnerable. IMF encourages the international community to step up support to Tunisia. - Pakistan - Negotiations: IMF and Pakistan are "closely engaged" in ongoing discussions; Madame Lagarde has met with Pakistan’s Prime Minister. - Missions: A mission to Pakistan is expected "shortly" though no exact date was provided. - Financing: No specific amount disclosed; financing decisions will be discussed during consultations. - Egypt - Staff report: The Egypt staff report has "gone through most of the clearance process" and "the Egyptian government supports its publication" — expected "very soon" though no specific date was given. ### Trade, tariffs, and analytical work - World Economic Outlook (WEO) analytical focus: - Two Analytical Chapters on trade in the upcoming WEO, one specifically addressing tariffs. - WEO will address issues including trade tensions, trade frameworks, the digital economy, intellectual property, and concerns about people being left behind by trade integration. - U.S.–China tariffs and modeling assumptions: - Previous WEO update assumed that tariffs would increase "from 10% to 25% on the 200 billion dollars worth of goods." - Negotiations ongoing; the upcoming WEO and Analytical Chapters will provide updated analysis and assumptions. ### Key policy messages and priorities emphasized by IMF at briefing - Support for data-dependent, carefully communicated monetary policy to minimize market disruption. - For emerging and vulnerable economies: prioritize fiscal consolidation where needed while protecting high-impact social spending. - Continue structural reforms to bolster growth: banking/corporate balance-sheet cleanup, labor and land reforms, improvements to business climate, and measures to create jobs. - IMF engagement and program activation are contingent on clear official recognition and guidance in cases where political legitimacy is disputed. - The IMF positions itself as a partner for capacity development, policy advice, and program financing where requested and warranted by member countries. *Transcript of IMF Press Briefing, March 21, 2019. International Monetary Fund.* --- ## References - [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) - [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm) - [France and the IMF](http://www.imf.org/external/country/FRA/index.htm) - [Greece and the IMF](http://www.imf.org/external/country/GRC/index.htm) - [Haiti and the IMF](http://www.imf.org/external/country/HTI/index.htm) - [India and the IMF](http://www.imf.org/external/country/IND/index.htm) - [Pakistan and the IMF](http://www.imf.org/external/country/PAK/index.htm) - [Republic of Mozambique and the IMF](http://www.imf.org/external/country/MOZ/index.htm) - [República Bolivariana de Venezuela and the IMF](http://www.imf.org/external/country/VEN/index.htm) - [Tunisia and the IMF](http://www.imf.org/external/country/TUN/index.htm) - [Republic of Türkiye and the IMF](http://www.imf.org/external/country/TUR/index.htm) - [Transcripts](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/2019/03/21/tr032119-transcript-of-imf-press-briefing_