By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Christine Lagarde, Managing Director (MD) of the International Monetary Fund (IMF), Friday said the Group of G-20 leaders has done much to stabilize the world economy and financial system; but yet to fully recover.

Lagarde said this in a Statement made available to InvestAdvocate at the conclusion of the Group of 20 Leaders’ Summit in St. Petersburg, Russia.

“As noted by the Leaders, coordinated action has done much to stabilize the world economy and the financial system. Leaders also recognize that much remains to be done to get the world economy working better,” she said.

According to her, global growth remains subdued, its underlying dynamics are changing, and market volatility and stability risks persist. Just as some advanced economies have begun to gather momentum, many emerging markets are slowing, and policy makers are grappling with challenges arising from domestic and external developments. “Unemployment, in particular among young people, also remains high in many countries,’ she said.

Lagarde endorsed the St. Petersburg action plan that stresses the importance of cooperation as countries address these challenges of promoting global growth, jobs, and financial stability. 

She affirmed that the action plan recognizes the need for fiscal consolidation to reflect economic conditions, the need to push forward on financial oversight and regulation, and the importance of comprehensive structural reforms to support growth.

“It is also right that monetary policy remain supportive where appropriate. I am pleased that the G-20 recognizes the need to ensure that exit from unconventional monetary policy, when it comes, should be orderly and clearly communicated. Both advanced economies and emerging markets will have to address their domestic challenges in order for spillovers to be effectively managed.

The IMF will continue to engage in these areas given their significant implications for the global economy,” she said.

The IMF boss also noted the discussions on tax evasion and tax avoidance where the Fund applauded the progress that was made.  “International taxation is another area where the Fund will be actively engaged,” she affirmed.

She approved the G-20 support for completing the IMF’s 2010 quota reform agreement; while advising the few remaining countries who are yet to do so to  quickly ratify the measures necessary to implement the important agreement.

“Completing this reform would contribute greatly to the evolution of IMF governance and help ensure that it better reflects the global economic reality,” she said.