By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)- Christine Lagarde, Managing Director (MD) of the International Monetary Fund (IMF), has reiterated continuous  recession in Euro Area.

This is coming on the heels of the conclusion of the Group of 20 Finance Ministers and Central Bank Governors meeting in Moscow.

According to the IMF Boss, the recession in the euro area continues, and many emerging markets are growing at a slower pace.

She affirmed that there has also been an increase in financial market volatility and tightening of financial conditions.

Lagarde said the global economy remains too weak and unemployment is too high in many countries. “Although there are signs of strengthening activity in the U.S. and Japan,” she said.

“We had constructive discussions on these issues, including notably on the spillover effects of monetary policies, the implications of recent market volatility, and the need for balanced and credible fiscal strategies. We also agreed on the importance of comprehensive structural reforms to raise productivity, reduce rigidities and support growth. These discussions will lay the basis for policy commitments in the St. Petersburg Action Plan.” She affirmed.

Lagarde said financial regulation and international taxation issues, including the agenda for dealing with international spillovers of national tax policies, also received attention in Moscow. “The IMF will continue to do its part in these areas, given their significant implications for the global economy.” She said.

She further affirmed that a joint Labour and Employment and Finance Ministers’ meeting that was also convened in Moscow discussed efforts to promote employment and job creation programs.

According to the IMF MD, these are welcomed measures that should be combined with appropriate macroeconomic and labour policies to foster innovation, promote growth, and high quality jobs.

“I also note G-20 support to work with our membership to complete the IMF’s 2010 quota reforms. I urged countries to quickly ratify the measures necessary to implement this important agreement and complete the governance reform agenda as soon as possible in line with IMF commitments.” The IMF MD said.

She looked forward to the G-20 Summit of Heads of State and Government in St. Petersburg in September where the key issues and challenges facing the global economy discussed in Moscow will be reviewed.