The International Monetary Fund (IMF) on Thursday urged developing economies to build on successes recorded and invest in future to help fast-track global economic recovery which has been termed “uneven”.
Christine Largarde, IMF managing director, said yesterday that the developing economies, which she classed together with the emerging economies as those recording success, must begin to invest in their future by meeting infrastructure and social needs which would really help drive the much-lacking but needed inclusive growth.
Addressing a press conference to officially mark the beginning of the ongoing spring meetings of the IMF and World Bank in Washington, Lagarde noted that emerging markets face new risk of avoiding financial excesses, advising that they should rebuild policy space, and strengthen financial relation and supervision.
“For the low income countries, and in that group you have really observed probably the fastest growth rates at the moment, they should build on success and invest in future, including by meeting infrastructure and social needs where the inclusive growth really kicks in,” Lagarde noted.IMF believes that the global economy is beginning to recover with worst situations avoided. The Fund expects global growth to stay around 3.3 percent this year which is not quite different from last year’s
But Lagarde yesterday observed that even though global economy is beginning to recover, it is not translating into a sustained pick-up in growth and jobs which for her is what ultimately matters most for people.
ONYINYE NWACHUKWU, Washington DC
