World economic indicators are showing growth which is likely to continue, however, many countries still do not feel the benefits of recovery in the global economy, said Thursday the managing Director of the International monetary Fund (IMF), Christine Lagarde, speaking at the Institute of Management Kennedy school of government at Harvard University in the U.S. state of Massachusetts.
Lagarde recalled that in July, the IMF predicted growth of the global economy in 2017 at 3.5%, said that soon the Fund will publish an updated forecast, and “it is likely to be even more optimistic”.
“Judging by the GDP, about 75% of the countries experiencing the rise, which is the largest growth rate since the beginning of the decade, said Lagarde. – This means that in many regions of the world there are new jobs and increasing the standard of living”.
However, the economic recovery has not affected all States. “In some countries there is slow growth,” and last year in 47 countries had registered a decline in GDP per capita, said the Director of the IMF, adding that “too many people are still experiencing benefits from the recovery” of the global economy, reports TASS.
In many countries with developed economies inflation is still at a low level, and virtually no unemployment. Lagarde stressed the need to continue conducting monetary policy that supports the recovery of the global economy, through close cooperation of Central banks. This, she said, will allow “to avoid instability in the markets and the sudden deterioration of financial indicators, which may undermine” growth.
Speaking about the US economy, the managing Director of the IMF noted that growth in the country may be higher than expected. “Forecasts for the US economy was unstable because of the actual economic performance and the changing prospects for tax reform, but during this year and next, growth will likely be above expectations,” said Lagarde.
She noted the steady growth of investment and trade in countries with a high level of economic development, especially actively this process takes place in Europe and Japan. In addition, stay strong in the Asian emerging markets, especially China and India.
In emerging and developing economies (among them the Russian Federation) there is a more clear term. Lagarde noted that financial stability is strengthened through more sound banking policies and increased the confidence of investors.
The head of the IMF also urged the politicians of the countries to cooperate to maintain the economy staying in the growth phase. “Politicians should use all available tools in order to act now and take advantage of the current period of global growth,” – said the head of the Fund. “Collaboration remains the best way to build a more prosperous future for each country,” she added.