Intergovernmental Group Of Twenty-Four On International Monetary Affairs And Development

1. We held our ninety-seventh meeting in Washington D.C. on April 20, 2017 with Abraham Tekeste, Minister of Finance and Economic Cooperation of Ethiopia in the Chair, Ravi Karunanayake, Minister of Finance of Sri Lanka as First Vice-Chair; and Julio Velarde, Governor of the Central Bank of Peru as Second Vice-Chair.

Managing Growth under Global Uncertainty

2. We welcome the increased momentum in global economic growth. Economic activity in emerging market and developing countries (EMDCs), while uneven across countries, is expected to strengthen. EMDCs will continue to contribute the bulk of global growth. However, downside risks from economic and non-economic sources remain high, including sharper than expected tightening of global financial conditions, a potential turn to inward-looking policies, and a reversal of financial regulatory reforms in systemically important advanced economies (AEs).

3. Boosting inclusive growth remains our priority as this is key to raising living standards and lifting many out of poverty. Investment growth, which has declined significantly in recent years, needs to be reinvigorated. This requires maintaining macroeconomic stability and continuing to strengthen fiscal, structural, and governance reforms tailored to country circumstances. We will use all policy levers to ensure that the benefits of growth are shared widely and to reduce high levels of income inequality. We call on the International Monetary Fund (IMF) and the World Bank Group (WBG) to support countries’ efforts in achieving inclusive growth.

4. A well-functioning international monetary system will support our efforts to manage vulnerabilities and pursue our growth agenda. We continue to call for a strengthened Global Financial Safety Net, with an adequately-resourced, quota-based IMF at its center. We look forward to an enhanced IMF toolkit that responds effectively to liquidity and precautionary needs of all countries and provides the right incentives for policymakers. More work needs to be done on how to minimize fears of perceived stigma attached to IMF facilities as well as to provide timely and adequate support for primary commodity exporters. We call for evenhandedness in lending decisions, including access and conditionality, and for tailoring policy advice to country circumstances. We look forward to greater cooperation between the IMF and Regional Financial Arrangements.

5. We continue to call for improved international policy coordination to minimize adverse spillovers from major economies’ policies. We welcome the IMF’s review of country experiences with its Institutional View on the management of capital flows and urge further work on the interaction of macro-prudential and capital flow management measures, to enhance the Fund’s policy advice in dealing with capital flow volatility. We look forward to further work to broaden the role and use of Special Drawing Rights as a reserve currency.

6. EMDCs have contributed to and…

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