Lagarde (IMF) calls for stronger action to global recovery

The global economic recovery is losing momentum and should be supported: it is the message that Christine Lagarde, Managing Director of the International Monetary Fund launched the leaders of the G20 countries and the whole world, on the eve of the summit of Hangzhou, China, on 4 and 5 September. Support for demand, structural reforms, revival of trade, are the strong actions indicated by Lagarde.

"The pendulum of politics is likely to move against economic openness and without strong action the world could experience a disappointing growth for a long time," she said, calling to boost trade and to send positive messages on globalization, which in many benefited. "It 's easy to blame trade for all the ills of a country: block free trade would result in stopping an engine that brings benefits in the world for decades".

The IMF does not rule out a downward revision of global growth, currently at 3.1%, in the coming weeks when it will announce its new estimates. It substantially 2016 will be the fifth consecutive year that will record a growth of global GDP to below its long-term average of 3.7%. and 2017 could well be the sixth.

The US slowdown weighs significantly, with second-quarter GDP grew by only 1.1%, less than expected. The slowdown in euro area and Japan "was expected, although the euro area growth was slightly slower than expectations", says the IMF in the document prepared ahead of the G20. 

Lagarde's words echo those of US Treasury Secretary Jack Lew who asks to be used all the tools for recovery. At G20 summit President Barack Obama "wants to act on growth, environment and inclusiveness, listening to ordinary people, especially the one cut off the recovery" and he highlights the importance of investing in jobs and support the incomes of the middle class.