Global economic outlook resilient so far, but far from certain: IMF
Policymakers should focus on resolving trade tensions and implementing macroeconomic policies to address underlying domestic imbalances, she told the third meeting of the G20 Finance Ministers and Central Bank Governors held at KwaZulu-Natal, South Africa, recently.
Downside risks continue to dominate the global economic outlook and uncertainty remains high, according to the IMF’s first deputy managing director Gita Gopinath.
Policymakers should focus on resolving trade tensions and implementing macroeconomic policies to address underlying domestic imbalances, she told the third meeting of the G20 Finance Ministers and Central Bank Governors held in South Africa.
This includes restoring fiscal space and ensuring debt is on a sustainable path. To maintain price and financial stability, monetary policy must be carefully calibrated to country-specific circumstances and use clear and consistent communications, she noted.
Central bank independence must be protected. Structural reforms remain essential to lift medium-term growth and offset demographic shifts, by boosting productivity, supporting job creation and leveraging new technologies, she said.
Since April, economic indicators reflect a complex backdrop shaped by trade tensions, she observed. IMF has seen strong evidence of front-loading ahead of tariff increases and some trade diversion, along with an improvement in global financial conditions as select trade deals lowered average tariffs, she added.
Fibre2Fashion News Desk (DS)
