IMF: Time is running out for the global economy
Adam Pike, News Editor
6 Apr 2016, 11:28 a.m.
Time is running out for global leaders to heal the global economy from the scars of the 2008 economic crisis.
Head of the IMF, Christine Lagarde, warned urgent action is needed to stop the global economy falling to an environment of low growth. Lagarde stressed the world economy is not in crisis, but if policymakers fail to act the next generation will face a prolonged period of stagnated growth.
Lagarde used her speech in Frankfurt to urge governments to increase public spending by pumping money into infrastructure projects and R&D. Sovereign debt has ballooned and many governments will lose credibility if they adopt this approach.
Governments and central banks have been successful in keeping the economic show on the road, but as the economy slows they will have no choice but to increase spending, reduce interest rates or once crank up the printing presses.
As cracks start to appear again in the global economy are we leaving the eye of the storm?