Advanced economies will return to “normal growth in two or three years”, so they have to focus on “structural and sustainable solutions,” said today the president of the Financial Committee and the International Monetary Fund, Tharman Shanmugaratnam.
“We need fiscal consolidation over the medium term, both in America and Europe, to return to normal growth in the medium term, two or three years, as the short-term growth will be weak,” the finance minister also Singapore at a press conference.
Shanmugaratnam acknowledged that “I am more confident now than one year”, but warned that “it is a journey of several years, full of challenges, in which politics intermingle with the economy.”
His comments came after the conclusion of the plenary of Monetary and Financial Committee, the main body of the IMF, accompanied by the managing director of the multilateral institution, Christine Lagarde.
Lagarde said “great achievement” of the meeting, according to the international expansion of the firewall to the 430,000 million, announced yesterday by the G20 and the International Monetary Fund (IMF).
“For long-term reforms anchor the fiscal consolidation is good to have a big umbrella,” said Lagarde.
He also stressed the “strong commitment expressed” by the 188 UN member nations to reform the quota system that better reflects the growing economic power of emerging countries, which is expected to close in the next annual meeting of the IMF and BM in October in Japan.
Category: Business News