by admin | May 25, 2021 | World
Christine Lagarde
Washington : International Monetary Fund (IMF) chief Christine Lagarde, has said the current situation of protectionist policies unleashed by the US has begun to have an effect on the global economy, slowing its growth, according to IMF forecasts.
“A key issue is that rhetoric is morphing into a new reality of actual trade barriers. This is hurting not only trade itself, but also investment and manufacturing as uncertainty continues to rise,” Lagarde said on Monday in a speech at IMF headquarters in Washington, Efe news reported.
In addition, she warned that if current trade disputes escalate “further, they could deliver a shock to a broader range of emerging and developing economies.”
The IMF in July projected world economic growth of 3.9 per cent for 2018 and 2019, although Lagarde said that the next forecast — to be announced in Bali, Indonesia, during the October 8-14 annual IMG and World Bank assembly — would be “less bright”.
However, the IMF Managing Director emphasised that global economic growth remains “at its highest level since 2011,” when the nations of the world began recovering from the economic crisis, and she hailed the fact that the unemployment figures are falling “in most countries”.
Despite this growth context, Lagarde warned that the world’s main economy, the US, in the future could suffer adverse effects from the tax reform approved last December by President Donald Trump.
“For now, the US is growing strongly, supported by a procyclical fiscal expansion and still easy financial conditions – which can become a risk in a maturing business cycle,” she said.
The IMF chief said that in other advanced economies, including those in the Euro Zone and, to a lesser degree, Japan, “there are signs of slowing”.
Lagarde also reviewed the challenges facing emerging markets and low-income nations, including Latin America, the Middle East and Sub-Saharan Africa.
Many of these economies are “facing pressures from a stronger US dollar and a tightening of financial market conditions. Some of them are now facing capital outflows,” she said.
To try and deal with this unstable situation, Lagarde said that the rules of the global trade system must be strengthened via the prevention of abuses by countries in dominant positions and by improving the implementation of intellectual property rights.
—IANS
by admin | May 25, 2021 | World
Chinese Foreign Minister Wang Yi
New York : Chinese Foreign Minister Wang Yi met Managing Director of the International Monetary Fund (IMF) Christine Lagarde here, exchanging views on multilateralism and reform of the World Trade Organization (WTO).
During the talks on Wednesday, Wang emphasized China’s stance in upholding multilateralism, free trade and international rules and law, reports Xinhua news agency.
Wang also called for increased international efforts to safeguard multilateralism.
Echoing Wang’s views, Lagarde said it was one of IMF’s principles to advocate multilateralism and international trade.
The international community should firmly protect multilateral trading system and abide by rules and regulations in international trade while addressing disputes through consultations, she said.
When discussing issues on the reform of WTO, Wang proposed the reform should be transparent, open and inclusive, since it is related to interests of all its members.
Opinions of all WTO members, especially the developing countries, should be considered, said Wang, noting that the global trade body plays a vital role in the development of international trade.
—IANS
by admin | May 25, 2021 | World
Christine Lagarde
Dublin : The EU should enhance its regulatory and supervisory capacities to cope with the possible influx of financial firms from London to continental Europe after Britain leaves the European Union, IMF Managing Director Christine Lagarde has said.
The International Monetary Fund made the remarks on Monday while delivering an opening speech at a two-day international conference held in Dublin to mark the upcoming 20th anniversary of euro, which was first introduced to world financial markets as an accounting currency on January 1, 1999, Xinhua reported.
She said that after Brexit, many financial firms are expected to relocate outside Britain if they lose their passporting rights, a right which allows a financial company authorized in one EU state to sell services and products in another.
“In the near term, it is critical to ensure that regulatory and supervisory capacities are prepared for the influx of financial firms that will move to continental Europe and Ireland as a result of Brexit,” she said.
The IMF chief told the participants at the meeting that “we meet at a moment when the EU and euro area are in the midst of difficult decisions about their future. Populist movements, from Brexit to the recent Italian elections, have called into question of the value of European integration.”
She said that it has been a complicated journey full of difficult moments for the euro area over the last decades or so.
“At age 20, the euro area is more mature. Battle scarred, yes, but also stronger and ready to move forward,” she said, adding that work was needed to enhance the euro area’s resilience and secure its future.
“The euro area needs truly integrated financial and capital markets that allow companies to raise financing across borders more easily and support investment,” she noted.
Lagarde also held a meeting with the Irish Prime Minister Leo Varadkar on Monday, during which she called Ireland to be prudent and plan for international economic shocks.
She said that the current employment rate and growth of the Irish economy is remarkable compared with the time when she first visited Ireland in 2013. However, she said the time to fix the roof is when the sun is shining, calling on the Irish government to set up a rainy day fund in case of next economic downturn.
—IANS
by admin | May 25, 2021 | World
Washington (IINA) – Head of the International Monetary Fund (IMF) Christine Lagarde said Wednesday that the amount of money paid worldwide in bribes is between 1.5 trillion and 2 trillion dollars, or about 2 percent of the value of the world’s economic output, DPA reported.
Lagarde quoted the figure from recent IMF research in an open letter published one day before the start of an anti-corruption summit in London. She said the amount is an estimate of the total value of bribes paid annually in both developing and developed countries.
Lagarde explained that corruption “undermines trust in government and erodes the ethical standards of private citizens.”
While the direct economic costs of corruption are well known, “the indirect costs may be even more substantial and debilitating, leading to low growth and greater income inequality,” she wrote.
The IMP chief also said in order to fight corruption, a multifaceted approach that promotes transparency and strong institutions centered on a professional civil service is needed.
by admin | May 25, 2021 | World
Christine Lagarde
Washington:(IANS) The International Monetary Fund (IMF) on Friday announced that it selected Christine Lagarde to serve as its leader for a second five-year term.
Lagarde, the sole candidate nominated for the post of the IMF chief, will start the second term from June 5.
The IMF said in the announcement that the decision was taken by consensus among its executive board.
Following the announcement, a jubilant Lagarde said: “I am delighted to be given the opportunity to lead the IMF as managing director for a second term of five years, and I greatly appreciate the continued trust and support of the fund’s executive board and our 188 member countries.”
The IMF praised Lagarde’s leadership during her first term. “Lagarde strengthened the fund’s ability to support its members with policy advice, capacity building, and financing. She has also played a critical role in revitalising the fund’s relations with its global membership, including its emerging market and developing members,” Aleksei Mozhin, dean of the IMF’s board, said in a statement.
Lagarde, a former French finance minister, took over as head of the IMF in 2011 following Dominique Strauss-Kahn’s resignation amid scandal. She is the first woman to lead the international organisation, Xinhua news agency reported.
