By taking a step back, "we can see that long-awaited global recovery is lasting," she said at a speech at Harvard University (Massachusetts, USA). In July, IMF anticipated global growth of 3.5% this year and 3.6% for 2018."Next week we're going to publish an updated forecast for opening of annual meetings and it should be even more optimistic."
It pointed out that almost 75% of world's countries were redressing, "which means more jobs and an improvement in standard of living in many parts of world". However, IMF director found that "This recovery is not total", and that in a number of countries growth is "too low". Last year, 47 countries also saw ir GDP per capita decline.
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In her view, main issue now is "knowing how to seize opportunity of this turnaround to secure recovery and create an economy that benefits greatest number." It has identified "threats to horizon" as a high level of debt in many countries, rapid expansion of credit in China, or excessive risk of risk-taking in financial markets.
"This moment must be addressed as an opportunity to make necessary changes to long-term prosperity," she added. We should not spoil good recovery. It is always easier to implement reforms when economy is doing well, she argued.
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"Intuitively, we feel that it makes sense: it is easier to reform tax code when wages increase or change regulation of labour when full employment is almost re," said Lagarde, who invited countries where public finances s are strong – as in Germany or South Korea – to invest more in ir own market and poor countries to contain ir public debt.