Leaders of the International Monetary Fund on Saturday said an uneven global economic recovery is emerging, and policymakers must take more steps to foster swifter growth and job creation.
“We need to act decisively to nurture a sustainable recovery and restore the resilience of the global economy,” the IMF’s steering committee said in a communique at the conclusion of the international finance organization’s annual spring meeting.
Central banks in the world’s biggest economies should continue their accommodative monetary policies, the International Monetary and Financial Committee’s communique said, and their eventual withdrawal of monetary expansion “will need to be carefully managed and clearly communicated.”
Nevertheless such easy-money initiatives alone cannot be counted upon to provide sufficient stimulus, the IMFC said.
“Credible medium-term fiscal consolidation plans remain crucial, in particular for the United States and Japan,” the IMFC communique said.
“The commodity that is in shortest supply now is confidence,” Singapore Finance Minister Tharman Shanmugaratnam, chairman of the IMFC, said at a press conference following the communique’s release.