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10 Apr 2015
“Global growth is just not good enough” – IMF Chief Lagarde
FXStreet (Mumbai) - The global economy risks getting stuck in a 'new reality' of mediocre growth, heavy debt and high unemployment, Christine Lagarde, head of the International Monetary Fund (IMF) said in a prepared speech to the Atlantic Council ahead of next week’s semi-annual meetings of the IMF and World Bank, raining down criticism on governments for their constant failure to boost the recovery.
Lagarde noted, "We must prevent that new mediocre from becoming the ‘new reality," "All policy space and levers must be utilized,"
"It is not that overall growth is bad," "It is rather that, given the lingering impact of the Great Recession on people ... growth is just not good enough."
Speaking further, she said financial risks to the global economy were rising, particularly amid a prolonged era of low - and in some cases even negative - interest rates.
"These foster a higher risk tolerance on the part of investors, which can lead to overpricing."
Lagarde noted, "We must prevent that new mediocre from becoming the ‘new reality," "All policy space and levers must be utilized,"
"It is not that overall growth is bad," "It is rather that, given the lingering impact of the Great Recession on people ... growth is just not good enough."
Speaking further, she said financial risks to the global economy were rising, particularly amid a prolonged era of low - and in some cases even negative - interest rates.
"These foster a higher risk tolerance on the part of investors, which can lead to overpricing."