World finance leaders issue sober assessment
International Monetary Fund (IMF) Managing Director Christine Lagarde, left, talks with IMFC Chair Tharman Shanmugaratnam during the World Bank IMF Spring Meetings in Washington, Saturday, April 20, 2013. (AP Photo/Molly Riley)
World finance leaders issued a somber assessment yesterday of the global economy, saying the recovery remains uneven with growth and jobs in short supply.
The steering committee for the 188-nation International Monetary Fund issued a final communique that called for decisive action to bolster growth. However, the major economies remained at odds over the best mix of policies to pursue.
“An uneven recovery is emerging but growth and job creation are still too weak. New risks are arising while several old risks remain,” the IMF group said.
“The commodity that is in shorter supply now is confidence,” Tharman Shanmugaratnam, the chairman of the IMF panel and Singapore’s finance minister, told reporters. “We need to regenerate optimism and confidence.”
The World Bank announced that its policy committee had approved a proposal to establish a goal of eliminating extreme poverty, defined as living on less than $1.25 per day, by 2030. It is estimated that there are still 1.2 billion people living in extreme poverty, with sub-Saharan Africa accounting for more than one-third of the world’s extreme poor.
World Bank President Jim Yong Kim called this goal “an historic moment” for the world. “We are no longer dreaming of a world without poverty. We have set an expiration date,” Kim told reporters at a closing news conference.