IMF confident of fragile economy recovering

Now Reading:

IMF confident of fragile economy recovering

Text size Aa Aa

Insufficient structural reforms by member states and rising geopolitical tensions over Ukraine are the biggest risks for the global economic recovery, the International Monetary Fund said in Washington on Saturday.

Concluding the spring meetings of IMF and World Bank, the Fund remains confident, though, that the still fragile recovery continues to strengthen.

Many leaders voiced concern about the potential impact of the Ukraine crisis, especially on Europe, which was already facing risk from deflation.

The IMF also renewed its commitment to multilateralism and to the development of a sustainable and environmentally-friendly economy.

“It was encouraging to hear some of the members also regard climate change and the degradation of the environment as of critical importance which, again, encourages us to work in that direction,” said IMF chief Christine Lagarde.

But in order to achieve these goals, the IMF needs to implement the governance reforms that were agreed to in 2010. Disappointed by the US Congress’ refusal to do so, the IMF again strongly urged Congress to ratify these reforms by the end of the year.

Reporting from Washington euronews correspondent Stefan Grobe said:

“The IMF’s global agenda is quite ambitious. Whether it can be successful, largely depends on the willingness of the US Congress to ratify the 2010 reforms. Washington has not done so yet. And in an election year this seems less than likely.”