## IMFC Press Conference

_IMF News, April 13, 2019_

## Source details

**Canonical URL:** [IMFC Press Conference](https://www.imf.org/en/news/articles/2019/04/13/tr041319-transcript-imfc-press-conference)

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## Bibliographic details
- Published: April 13, 2019

---

### Overview
- Event: IMFC Press Conference
- Date: April 13, 2019
- Time: 12:45 p.m. ‑ 1:20 p.m.
- Speakers: Lesetja Kganyago (Chairman, IMFC; Governor, Reserve Bank of South Africa), Christine Lagarde (Managing Director, IMF), Gerry Rice (Director, Communications Department, IMF)
- Media relations contact: PRESS OFFICER: Alistair Thomson; Phone: +1 202 623-7100; Email: MEDIA@IMF.org

### Global economic outlook and risks
- Finding: Global expansion is continuing but at a slower pace since the IMFC last convened in October.
- Projection: A pickup is expected next year, but with notable downside risks.
- Downside risks highlighted:
  - Trade tensions
  - Geopolitical risks
  - Political uncertainties
- Recommendation: Act promptly to protect the expansion.

### Policy guidance and recommendations
- Fiscal policy:
  - Should remain flexible and growth‑friendly.
  - Rebuild buffers.
  - Strike the right chord between debt sustainability and supporting demand.
  - Social objectives should be considered in the fiscal mix.
- Monetary policy:
  - Ensure inflation is on track towards target.
  - Keep inflation expectations well anchored.
  - Decisions should be well‑communicated and data‑dependent.
- Financial stability:
  - Tackle emerging financial stability risks with all available tools, including macroprudential tools.
- Governance of the IMF:
  - Reaffirmed commitment to a strong, quota‑based, and adequately resourced IMF.
  - Goal: complete reforms by the time the IMFC next meets in October at the Annual Meetings.

### Global cooperation priorities
- Joint action and upgraded international cooperation flagged as themes.
- Priorities identified:
  - Trade
  - Global imbalances
  - International corporate taxation
  - Debt vulnerabilities
  - Climate change
  - Cyber risks
- Support noted for Christine Lagarde's Global Policy Agenda addressing these challenges.

### Central bank independence, accountability, and communication
- Observations:
  - Renewed political pressure on some central banks noted.
  - Key principles emphasized by central bank governors:
    - Accountability — clearly report back to those they are accountable to.
    - Transparency — transparent processes for decisions.
    - Communication — improve how central bankers communicate technical decisions.
- Conclusion: Independence has served central banks well; clearer mandates facilitate accountability. Broader mandates can make accountability more difficult.

### Trade scenario impacts (quantified)
- Data points provided by Managing Director Christine Lagarde:
  - Total volume of goods traded between the U.S. and China cited: $500 billion.
  - Applying tariffs to a large portion of traded goods between the U.S. and China: puts at risk 0.8 percent of global growth.
  - Eliminating only 25 percent of the barriers on the trading of services: yields a positive effect of 0.8 percent on global growth.

### Country‑specific notes
- China:
  - China is a member of the IMF and subject to an Article IV assessment; developments in China affect the global economy.
- Japan and G20 expectations:
  - Support for Japan’s leadership of the G20; priorities include demographics, health/pension/fiscal space, and global imbalances addressed via saving‑investment balance.
- Venezuela:
  - IMF extremely concerned about the humanitarian crisis and displacement affecting millions.
  - IMF actions guided by membership recognition of authorities; readiness to help once membership positions allow.
- Zimbabwe:
  - IMF will conduct a staff‑monitored program with Zimbabwe.
  - Social protection and inclusion principles to be applied, with a social protection framework to be discussed at the Board in the next few weeks.
  - Potential role for financial technologies to enhance inclusion given current monetary and currency situation.
- Greece:
  - Informal discussion noted between Managing Director Lagarde and Euclid Tsakalotos about Greece’s economy, fiscal policies, primary surplus, and Greek cinema.

### Communications and next steps
- IMFC communiqué captures agreed assessments and policy recommendations.
- Momentum noted coming out of the Spring Meetings, with progress toward completing IMF governance reforms by the Annual Meetings in October.

*IMFC Press Conference — April 13, 2019*

---


## References

- [People's Republic of China and the IMF](http://www.imf.org/external/country/CHN/index.htm)
- [Japan and the IMF](http://www.imf.org/external/country/JPN/index.htm)
- [South Africa and the IMF](http://www.imf.org/external/country/ZAF/index.htm)
- [United States and the IMF](http://www.imf.org/external/country/USA/index.htm)
- [Zimbabwe and the IMF](http://www.imf.org/external/country/ZWE/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/2019/04/13/tr041319-transcript-imfc-press-conference_