International Monetary Fund (IMF) managing director Christine Lagarde welcomed the G20 growth agenda, saying that the goal is attainable.
Meeting in Australia, finance ministers of the Group of 20 countries struck a landmark deal to lift global economic activity by US$2 trillion over the next five years, that could create tens of millions of jobs across the globe. The IMF estimated that the measures would lift the collective GDP by at least an additional 2 per cent over the coming five years, or the equivalent of about $2.25 trillion.
In a statement, Lagarde said though global growth has strengthened in recent months, largely driven by advanced economies, increased financial market and capital flow volatility in emerging economies and low inflation rates in advanced economies pose important challenges ahead. Further action and international cooperation are necessary to promote a more robust global recovery - one that is sustained and fosters healthy job creation - and to counteract actual and potential risks.
"Measures to support investment, boost trade, and promote competition will be essential for more sustainable and robust growth, as noted by the G20.
“It is also important that the G20 committed in Sydney to consistently communicate monetary policy actions with the aim of aiding efforts to manage spillovers. Global dialogue and improved communication are essential to help safeguard financial stability. They also committed to take the necessary steps to manage deflationary and inflationary pressures. The IMF supports these efforts, and stands ready to assist its members with policy advice, and where needed, with financing."
Towards the G20's expression of regret over the lack of progress in making effective the IMF’s 2010 Quota and Governance Reform and their intention to take stock in the next few months of progress towards meeting this goal, she said the IMF also shared this view and urged rapid progress on implementation.
"I look forward to continuing discussions on this matter and many of the issues explored in Sydney at the next meeting of the International Monetary and Financial Committee (IMFC) scheduled for April in Washington."