The International Monetary Fund’s steering group has urged member countries to boost “growth-friendly” spending and said the fund should explore new lending tools to help deal with slowing global growth.
IMF managing director Christine Lagarde said calmer markets since February had reduced the stress level at the IMF and World Bank spring meetings held in Washington this weekend, but the outlook was still fraught with downside risks from weak demand, a potential UK exit from the European Union and low oil and commodity prices.
“There was not exactly the same level of anxiety but I think there was an equal level of concern, and a collective endeavour to identify the solution and the responses to the global economic situation,” Ms Lagarde told a news conference.
The International Monetary and Financial Committee said in its statement: “Downside risks to the global economic outlook have increased since October, raising the possibility of a more generalised slowdown and a sudden pull-back of capital flows.”
– (Reuters)
