IMF pushes for restored confidence in global economy

Friday, 22 Jun 2012

Efforts need to be made to restore confidence in the global economy, especially as conditions are so difficult at the moment, the managing director of the International Monetary Fund (IMF) has said.

Christine Lagarde explained to delegates of the G20 leaders' summit in Los Cabos that more steps need to be taken before a global recovery can fully get underway and the financial markets can improve.

"I take away from Los Cabos a sense of convergence that will facilitate the comprehensive and coordinated approach to global economic and financial challenges advocated by the IMF," she commented.

G20 leaders have in their sights the goal of creating balanced and sustainable growth, which will mean taking steps to strengthen demand and restore confidence.

Ms Lagarde emphasised that there is widespread concern about the eurozone, although G20 leaders have planted "the seeds of a pan-European recovery plan".

Australian prime minister Julia Gillard recently told the B20 Plenary Session in Los Cabos that the country's economic strength is largely down to its response to the global financial crisis.

She said that the reaction was "timely, temporary and targeted", which put Australia in a good position for dealing with the economic turmoil.