IMF chief cautiously upbeat on global economy
CHINA: IMF chief Christine Lagarde said Sunday measures taken
to fight financial woes in Europe and the United States were starting to
pay off, in a cautiously upbeat assessment of the global economy.
Lagarde was in Beijing for a two-day trip to attend a forum on
China’s development and hold meetings with her economic counterparts,
such as Vice Premier Wang Qishan, before she travels to India.
“Even just a few months ago, the situation was decidedly gloomy.
Indicators for the last quarter of 2011 -- namely for Europe and the
United States -- did not provide much reassurance,” Lagarde said in a
speech at the forum. “Yet, today, we are seeing signs of stabilisation;
signs that policy actions are paying off.
“Financial-market conditions are more comfortable and recent economic
indicators are beginning to look a little more upbeat, including in the
United States.” Europe -- China’s top export market -- has been hit by a
severe debt crisis that has seen a wave of credit-rating downgrades and
brought Greece to the brink of bankruptcy, sparking concern across the
world.
But Lagarde said some of the policy actions taken -- particularly by
the European Central Bank and some European countries -- had helped
stabilise the overall situation. Most EU nations agreed in January to a
treaty that will require governments to introduce laws on balanced
budgets and impose near-automatic sanctions on countries that violate
deficit rules.
And the looming threat of a Greek default has receded after a large
majority of the country’s private creditors agreed to a bond swap that
will see them accept huge losses and wipe some 100 billion euros ($132
billion) off Athens’ debt.
In the United States, meanwhile, the economy is showing signs of
improvement with better consumer and business spending and an improved
job market, even if there is still high unemployment and a depressed
housing sector.
AFP |