Apec economies can do their part: IMF
Asia Pacific economies are urged to lend their hands in balancing the global economy in light of fragile situation in the euro zone, said International Monetary Fund managing director Christine Lagarde.
In her speech to the Asia-Pacific Economic Cooperation (APEC) summit in Honolulu, Hawaii, US, she said that it is important to avoid other risks to the global economy, especially those related to low growth and unacceptably high unemployment.
“For APEC’s advanced economies, this means primarily adopting strong medium-term fiscal consolidation plans, which will create space to accommodate growth and jobs now. For APEC’s emerging market and developing economies, it means addressing underlying vulnerabilities including better social safety nets; investing in infrastructure, health and education; financial sector reform; and exchange rate appreciation where necessary.
“We need to work together to support growth that creates jobs, is inclusive, and benefits all. APEC embodies that spirit of shared responsibility and action.”
Lagarde reiterated that the Apec economies are a major engine of growth and a vital contributor to the global recovery at this critical moment for the world. She also emphasized the IMF's concern about the current risks to the global economy, with a particular focus on the challenges facing the euro zone countries.
"Without a solution to the Euro Zone crisis, the world economy could be swept into a downward spiral of collapsing confidence, weaker growth, and fewer jobs. This would affect all nations and so we all have a stake in resolving that crisis," she said.
