IMF: Increase in global growth should be met with policy, reforms

WASHINGTON, April 21 (KUNA) - Global growth has strengthened and should be taken advantage of with advance policies and reforms in order to benefit all, said the communique from the meeting with the International Monetary Fund (IMF)'s International Monetary and Financial Committee.
The increase in global growth has been driven by investment and trade.
"The window of opportunity remains open and should be used expeditiously to advance policies and reforms that sustain the current upswing, enhance resilience, and raise medium-term growth for the benefit of all," it said "Fiscal policy should be flexible and growth-friendly, rebuild buffers where needed, avoid procyclicality, create space to invest in infrastructure and workforce skills, and ensure that public debt as a share of GDP is on a sustainable path,' it added.
Structural reforms should lift productivity, potential growth, and employment. Therefore, the IMF will work to reduce global imbalances in inclusion to support global growth by pushing appropriate and sustainable policies.
"Strong fundamentals, sound policies, and a resilient international monetary system (IMS) are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment. Flexible exchange rates, where feasible, can serve as a shock absorber" the communique said.
The group asserted that it would "cooperate to tackle shared challenges" and "work for a globally fair and modern international tax system, address tax and competition challenges," it said. (end) ak.ibi