Christine Lagarde, MD of the International Monetary Fund (IMF), addressing an audience at a recent event in Harare, said that the global economy needs a foundation of sound domestic policies combined with a steadfast commitment to international cooperation.
Speaking about the global outlook and policy priorities ahead of the upcoming 2017 IMF Spring Meetings, Lagarde said these two elements - in both domestic and international forms- were needed to create a more resilient global economy with sustainable, more durable, and more inclusive growth. She said:
"For advanced economies, the outlook has improved with stronger manufacturing activity. This upswing is broad-based across countries - including in Europe - although some countries here still face high debt and weaknesses in some banks."
The prospects for emerging and developing economies also bode well for global growth, she said:
"These countries have driven the global recovery in recent years, and they will continue to contribute more than three-quarters of global GDP growth in 2017," said Lagarde, adding that higher commodity prices have brought relief to many low-income countries.
The world economy is gaining momentum as a cyclical recovery holds out the promise of more jobs, higher incomes, and greater prosperity going forward, she added; good news after six years of disappointing growth.
