Global markets need reforms to avert crisis – IMF

Global markets need reforms to avert crisis – IMF

The managing director, International Monetary Fund ,Christine Lagarde says sharp swings in global financial markets in the past few days are not worrying

since economic growth is strong, but reforms are needed to avert future crises.

Christine Lagarde, speaking at a conference on global business and social trends in Dubai, said economies were also supported by plenty of financing available.

“I’m reasonably optimistic because of the landscape we have at the moment. But we cannot sit back and wait for growth to continue as normal,” she said in her first public comments on market movements since the latest round of turmoil at the end of last week.

“I’m ringing not the alarm signal, but the strong encouragement and warning signal.”

IMF forecasts last month that global economy would grow 3.9 percent this year and at the same pace in 2019, which she said was a good backdrop for needed reforms.

 Global stock markets were hit by wild fluctuations, with the U.S. benchmark S&P 500 tumbling 5.2 percent last week, its biggest weekly percentage drop since January 2016. The volatility was fuelled by investor worries about rising interest rates and potential inflation.
She did not give details of the reforms she wanted to see beyond saying authorities needed to move to regulation of activities, not entities.

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