By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)- Christine Lagarde, Managing Director (MD) of the International Monetary Fund (IMF), on Sunday urged the Group of 20 (G20) to meet up the two percent (2%) goal earlier set for its collective Gross Domestic Product (GDP); while commending them for developing growth strategies to lift medium-term growth.
Lagarde gave this advice at the conclusion of the G20 Finance Ministers and Central Bank Governors Meeting in Cairns, Australia.
“I commend G20 countries for significant progress in developing growth strategies to lift medium-term growth. According to our preliminary assessment with the OECD, the commitments made to date as part of these strategies have the potential to raise the collective GDP of the G20 by about 1.8 percent by 2018, compared to the 2 percent goal set earlier this year in Sydney. This is an important achievement, and final efforts should be made to reach the agreed goal,’’ she said.
The IMF chief said despite the global recovery continuing, the pace of growth remains low and uneven, in part given increased geopolitical tensions and risks of financial market turmoil. ‘’Promoting economic policies that can contribute to a more robust and job-rich recovery is therefore critical at this stage,’’ Lagarde said.
According to her, determined implementation will be crucial in the years to come, and while this process should remain country led in the spirit of the G20 effort, the IMF is ready to help in monitoring the effort.
She affirmed that the Fund will continue to support sound monetary and fiscal policies, including through the analysis of spillovers, to promote broad and equitable growth.
Lagarde further affirmed that the IMF has also been asked to help the G20 work on a global response to cross-border tax avoidance and evasion that will support growth-enhancing fiscal strategies.
“I note the G20 call for progress in making effective the IMF’s 2010 Quota and Governance Reform. We share the sense of importance of rapid progress and implementation, and urge our member countries to complete the reform,’’ the IMF chief said.
