US, Europe pressed to tackle crisis

The US and Europe were the centre of the discussion in Mexico City, as their debt problem is dragging the global economy. 

“The global economic context remains difficult and the fragile recovery remains at risk if the needed policy actions are not implemented. It will be important for the US to address quickly the so-called fiscal cliff. Time is of the essence, and significant policy uncertainty in Washington must be addressed. Japan faces similar challenges, and must also quickly articulate a course of action. Europe, in turn, remains a challenge globally and must deliver on its policy commitments to assure a more stable euro zone. Discussions over the past two days in Mexico City point to a shared sense of urgency among all stakeholders, and make me believe that there is now a higher probability of success on the policy front," said Christine Lagarde, managing director of the International Monetary Fund (IMF).

In a statement, Lagarde promised that the IMF would do its part, by actively seeking solutions to ensure that economic policies at the national and multilateral level promote stronger growth, create more jobs, and reduce poverty worldwide. 

She promised further collaboration with G-20 countries in the months ahead to complete important governance reforms that will help maintain the legitimacy of the IMF, particularly in the context of the evolving role globally of emerging and developing countries. 

“In sum, the G-20 ministerial meeting in Mexico City is a mile post in the ongoing efforts of the public policy community to restore stronger global growth. This is a complex process in which there is a clear understanding that the pace of action is important. We look forward to the continued efforts of the G-20 under the leadership of Russia in this regard," she said.