IMF chief says recovery still fragile, some improvement

IMF chief says recovery still fragile, some improvement
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The head of the International Monetary Fund, Christine Lagarde, is keeping up the pressure on world leaders and urging them not to become complacent.

Despite signs of financial stabilisation in the eurozone and stronger growth in the United States she said the job must be finished.

“The recovery is still very fragile, the financial system in Europe is still under heavy strain, debt is still too high, both public and private, stubbornly high unemployment is really straining the seams of society, and – to add to the list, as if it wasn’t enough, oil prices are clearly another cloud on the horizon.”

Speaking at a newspaper industry event in Washington DC, the IMF Managing Director said Europe was in the most fragile state and the world’s developed nations should “increase their firepower”.

To boost growth, countries should make use of monetary policy, especially with no real signs of inflation in advanced economies, she said.

She was also critical of the United States high public debt levels, currently exceeding 100 percent of gross domestic product. “The country needs a stronger push to fix its public finances in the years ahead, including by curbing the growth of entitlement spending and raising more revenue,” Lagarde said.

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