IMF Director: Global Recovery Still Fragile

The global recovery is still “very fragile” despite signs of financial stabilization in the euro zone and stronger growth in the United States, the head of the International Monetary Fund said on Tuesday.
“It’s fair to say that things are looking a bit better than they did even a few months ago,” IMF Managing Director Christine Lagarde added.

However, Lagarde said policymakers should not become complacent and must “use the breathing space to finish the job.”

To boost growth, countries should make use of monetary policy, especially with no real signs of inflation in advanced economies, she said.

According to Reuters, Lagarde urged the United States to tackle its high public debt levels, currently exceeding 100 percent of gross domestic product. “The country needs a stronger push to fix its public finances in the years ahead, including by curbing the growth of entitlement spending and raising more revenue,” Lagarde added.

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