Latest News:  
Beijing   Cloudy/Overcast    7 / 0   City Forecast

People's Daily Online>>Foreign Affairs

IMF chief cautions against false sense of security


08:42, March 19, 2012

BEIJING, March 18 (Xinhua) -- Visiting chief of the International Monetary Fund Christine Lagarde warned Sunday that the global economy may be on a path to recovery, but there is not a great deal of room for maneuver and no room for policy mistakes.

There are still major economic and financial vulnerabilities even though financial market conditions are more comfortable and recent economic indicators begin to look more upbeat, including in the United States, she said at the China Development Forum held Sunday in Beijing.

Decision and policy actions by the European Central Bank and some European countries have helped and that progress was made after renewed support for Greece--from both the IMF and European partners, she said.

On the back of these collective efforts, the world economy has stepped back from the brink and we have cause to be more optimistic, she said.

However, she said optimism must not lull us into a false sense of security. Citing as an example, she said financial systems are still fragile and high public and private debt persists in many advanced economies.

Meanwhile, the rising prices of oil is becoming a threat to global growth, said the IMF chief.

She called on advanced economies to capitalize on the newly gained breathing space and push forward with policies that will enable them to emerge from the crisis that hit the United States and Europe.

"This means continued macroeconomic support and a balanced fiscal approach, together with financial sector reforms and structural and institutional reforms to repair the damage done by the crisis and to improve competitiveness", she said.

She also urged emerging market economies to calibrate macroeconomic policies -- both to guard against further fallout from the advanced economies as well as to keep overheating pressures in check, and continue to invest in such reforms as increasing social transfers or lowering consumption taxes.


Leave your comment0 comments

  1. Name


Selections for you

  1. Helicopter dispatched to SW China forest fire

  2. Bomb disposal team defuses hoax bomb in Shenzhen

  3. Warplanes conduct confrontation drilling

  4. British shop owner in Beijing’s hutong

Most Popular


  1. Nuclear security cooperation
  2. Arms race will happen, but who to blame?
  3. Why China can't persuade N.Korea alone
  4. WTO's raw materials ruling reveals bias
  5. 21st Century classrooms needed for the future
  6. West's rare earth claim against China unreasonable
  7. Chinese economy vital for world
  8. How should China provide for seniors?
  9. Obama brings new trade case against China
  10. Giving is an aid to prosperity

What's happening in China

Poverty relief campaign offered in 798 Art Zone

  1. Coal-rich city aims to become sunshine state
  2. Firm admits it sold dead ducks
  3. Synthetic drugs pose new challenge
  4. Union chiefs asked to give contact info
  5. Carrefour food scandal shuts down store

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai