Don’t Let a Good Recovery Go to Waste

Earlier this week I spoke at the Center for Global Development (CGD) and outlined the work needed across the world’s economies to ensure the current upswing is used to create inclusive growth. The pickup in global growth predicted in April remains on track, as we project growth to be 3.5% of GDP in 2017 and 3.6 % in 2018. But risks remain, as we outline in our most recent World Economic Outlook. Policy makers should take action to make the most of the recovery or, as I put it in the conversation at CGD, to not let a good recovery go to waste. I emphasized five ways to do it:

• Strengthen the growth momentum, by providing support where needed, through fiscal measures such as infrastructure investment, where feasible, and through monetary policy.
• Make growth more resilient and balanced. Corporate balance sheets should be repaired and public debt can be reduced to ensure stability.
• Sustain high and inclusive growth in the long term, through tailored structural reforms and support for those at risk of being left behind.
• Maximize the benefits of global integration. This includes preserving a strong, rules-based multilateral trade framework.
• Support low-income countries, including by responding to non-economic challenges—such as epidemics and famines—some of which are linked to climate change. This underscores the need for collective action to address this global threat. The IMF will continue to help our member nations design programs that reduce poverty and protect public spending on health and education.

The world’s economies have worked together since the global financial crisis to achieve growth. Let us use this moment to strengthen our shared economic health, and build a resilient, inclusive system which benefits all.

Watch the CGD conversation about these topics.