## IMF Managing Director Lagarde Calls for Cooperation to Support Global Growth

_IMF News, June 9, 2019_

## Source details

**Canonical URL:** [IMF Managing Director Lagarde Calls for Cooperation to Support Global Growth](https://www.imf.org/en/news/articles/2019/06/09/pr19205-imf-managing-director-lagarde-calls-for-cooperation-to-support-global-growth)

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## Bibliographic details
- Published: June 9, 2019

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### Context and meeting outcome
- Statement issued at the conclusion of the Group of 20 (G20) meeting of Finance Ministers and Central Bank Governors in Fukuoka, Japan.
- Press Release No. 19/205; date: June 9, 2019.
- Meeting prepared the ground for the Leaders’ Summit in Osaka on June 28-29.

### Economic assessment and key risks
- Global economy: "showing tentative signs of stabilizing and growth is projected to strengthen."
- Principal downside risks identified:
  - Continuing trade tensions.
  - Rising debt levels in many advanced economies amid very low interest rates.
  - Vulnerability of emerging markets to a sudden shift in financial conditions.
  - Limited monetary and fiscal policy space relative to the past.
- Quantified trade-cost estimate:
  - IMF estimates that US-China tariffs, including those implemented last year, could reduce the level of global GDP by 0.5 percent in 2020 or about US$455 billion.

### Policy recommendations and potential gains
- Trade policy:
  - Resolve current trade tensions, including eliminating existing tariffs and avoiding new ones.
  - Continue work toward modernization of the international trade system to increase certainty and confidence and to support global growth.
- Monetary policy:
  - "In most countries, monetary policy should continue to be data dependent and accommodative."
- Fiscal policy:
  - "Fiscal policy should carefully balance growth, debt, and social objectives."
- Structural reforms:
  - Implement reforms such as opening up markets and encouraging greater participation by women in the workforce to lay foundations for stronger and more inclusive growth.
- Aggregate impact of coordinated measures:
  - IMF estimates joint implementation of these kinds of measures could boost the G20’s GDP level by 4 percent over the long term.

### Other areas requiring determined joint action
- International tax: ensure a "globally fair, sustainable and modern system."
- Financial sector: ensure "an open and resilient system grounded in agreed international standards."
- Debt (particularly for low-income countries): cooperation essential to ensure transparency and sustainability.
- Global economic imbalances: importance of working together to tackle imbalances concentrated in advanced economies.
- Aging/demographics: focus on policy implications and mutual support; IMF offered new cross-country research and analysis to support dialogue (See G20 Background Note Macroeconomics of Aging and Policy Implications).
- FinTech/digital age: emphasized importance of international cooperation in harnessing the potential of FinTech (speech at G20 seminar "Our Future in the Digital Age" in Fukuoka).

### Gratitude and next steps
- Thanks to Deputy Prime Minister Taro Aso, Governor Haruhiko Kuroda, the Japanese authorities, and the people of Japan for organization and hospitality.
- Managing Director Lagarde looked forward to returning to Japan later in June.

*IMF Press Release No. 19/205, June 9, 2019.*

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## Content in this bundle

- [060519a (PDF)](/external/np/g20/pdf/2019/060519a.pdf){rel="external" type="application/pdf"}
- [060519b (PDF)](/external/np/g20/pdf/2019/060519b.pdf){rel="external" type="application/pdf"}

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## References

- [Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)
- [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)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [G20 Surveillance Note](https://www.imf.org/external/np/g20/060519.htm)
- [spoke at the G20 seminar “Our Future in the Digital Age”](https://www.imf.org/en/News/Articles/2019/06/07/sp060819-lagarde-the-next-steps-for-international-cooperation-in-fintech)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2019/06/09/pr19205-imf-managing-director-lagarde-calls-for-cooperation-to-support-global-growth_