G20 global growth target attainable: Lagarde
Feb 23 2014 , Sydney
"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," she said.
The International Monetary Fund (IMF) has projected the global growth at 3.7 per cent in 2014 and slightly up at 3.9 per cent in the following year.
The G20 agreed to develop and implement measures aimed at lifting collective GDP by at least an additional 2 per cent over the coming five years, or the equivalent of about $2.25 trillion.
"This goal is attainable and is in line with IMF analysis presented to the G20 this week. Measures to support investment, boost trade, and promote competition will be essential for more sustainable and robust growth, as noted by the G20," the IMF chief added.
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.
Referring to the G20 regret on delay in IMF reforms, she said the agency share this view and urge 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," she added.
The IMF chief said: "We need to have an institution that is the representative of the evolution of the economy which requires that 2010 reforms be actually delivered on by the membership, which I very much hope it will be".
India has been pressing for implementation of the quota reforms which will give greater say to developing nations in the Washington-based multilateral lending agency.
The quota reform once implemented will increase India's voting share from the current 2.44 per cent to 2.75 per cent, following which the country will become the eighth largest quota holder at the IMF, up from the 11th position.