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IMF chief warns against complacency in global economic recovery

17 January 2013 23:39 (UTC +04:00)

Baku-APA. There is a lot of work left to do to bolster global economic recovery despite some important steps taken in key economies to reduce financial and fiscal risks, Christine Lagarde, Managing Director of the International Monetary Fund (IMF), said here on Thursday, APA reports quoting Xinhua.

"We stopped the collapse. We should avoid the relapse. And it's not time to relax," Lagarde said at a news conference on the outlook of global economy in 2013.

The global economic collapse has been avoided due to decisive action taken by policymakers especially in developed countries. In the eurozone and United States, although some decisions are often made at the last hour, the economic collapse has been averted, she told reporters.

There is still a lot of work to be done to strengthen the global economic recovery, and policymakers should avoid the relapse of a crisis despite some nascent economic recovery signs and improving market confidence, Lagarde said.

"It's important to follow through on policies to put uncertainty to rest," stressed the IMF chief, adding that key common challenge among advanced economies would be restoring fiscal sustainability.

"We are particularly concerned about the medium-term plans" of developed countries to improve fiscal sustainability to bring their public debts down, she said.

Global decision makers should also focus on the real economy growth that can lead to job creation, as there are more than 200 million people out of work globally.

"We need growth for jobs, and jobs for growth," which is a virtuous cycle, she added.