G20 meeting held against backdrop of continued strong, more uneven global growth – IMF chief

Chief of the International Monetary Fund (IMF) Christine Lagarde stressed late Sunday that the meeting of the Group of 20 (G20) Finance Ministers and Central Bank Governors in Buenos Aires, Argentina “took place against the backdrop of continued strong but more uneven global growth.” In a statement, Lagarde said, “indeed, the world economy is facing increasing risks, especially in the short term, from rising trade tensions, financial pressures in vulnerable emerging economies, and the return of sovereign risk in parts of the euro area.” She added that during the meetings, she “encouraged” policy makers to “address these growing risks decisively and in a cooperative spirit to ensure that the recent period of strong growth endures and that the dividends are more widely shared.

“This is most crucial when it comes to safeguarding the open international trade system. I urged once more that trade conflicts be resolved via international cooperation without resort to exceptional measures,” she stressed.

She noted, “in response to financial volatility, exchange rate flexibility should continue to play a role in buffering shocks in emerging economies, and prudential policies should address financial vulnerabilities everywhere.

Lagarde indicated that in Buenos Aires, discussions also focused on “the future of work, a key priority for the Argentine G-20 chairmanship.” She affirmed that there was “broad recognition in our meeting that the benefits of a strong financial regulatory system offset its costs and that global cooperation remains critical.

“I am encouraged that the G20 Ministers and Governors reaffirmed their commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net,” she concluded.

Source: Kuwait News Agency