IMF for More Public and Private Investment in India
Highlighting that the major G20 countries, at their meeting in Australia in February, recognised that the right policy actions by countries and the right cooperation across countries could raise world GDP by over 2 per cent over the next 5 years, Lagarde said this would place the global economy on a substantially different and better trajectory.
Noting that the economic activity in the advanced economies is improving, albeit at varying speeds, the Managing Director said, "the emerging market and developing economies have been shouldering the burden of recovery accounting for 75 percent of the increase in global growth since 2009."
The recovery is finally becoming a bit more balanced, in an overall economic landscape that has changed significantly, she added.
In the advanced economies, growth is strongest in the United States, supported by robust private demand and an easing of the short-term fiscal brake.
Lagarde said activity in emerging market economies, which has been slowing, picked up slightly in the latter part of 2013 by stronger demand from advanced economies.
"Although tighter external financial conditions will be a drag on domestic demand, emerging Asia in particular will continue to be a bright spot, posting the world's highest growth rate of more than 6 per cent this year," she said.
Read More:
