Lagarde: Global economy at a turning point…we must unlock Africa

Christine Lagarde, managing director of International Monetary Fund (IMF), says the global economy has reached a turning point and must unlock opportunities in Africa.

Lagarde said this, while addressing finance ministers from the G20 in Germany over the weekend.

“Our meeting showed once again that the G20 provides a critical platform for major economies to work together within an established framework. We met at a time when growth is gaining momentum around the world and there are signs that the global economy has reached a turning point, even though uncertainties remain,” she said.

“Strong monetary, fiscal and structural policies matter more than ever for what comes next. Global cooperation and pursuing the right policies can help achieve strong, sustained, balanced, and inclusive growth, while the wrong ones could stop the new momentum in its tracks.

“I reaffirmed the IMF’s readiness to contribute to enhancing global understanding and cooperation in line with our mandate, including through vigorous exchange rate surveillance and analysis of global imbalances.”

Dealing with imbalances in the global economy, the IMF MD said she is in support of the plans to turn to Africa to unlock investments.

“As global financial conditions may tighten, we are committed to supporting our membership in the management of risks stemming from excessive capital flow volatility.

“We will enhance our monitoring tools and stand ready to provide policy advice, including on macroprudential policies, as well as capacity building and financial support as warranted.

“I strongly welcome the proposed compacts between African and G20 countries to build capacity and unlock investment flows. All five countries in the first wave have Fund-supported arrangements.

“We will work closely with the authorities to strengthen their macroeconomic frameworks and will step up the provision of technical assistance.”

“I would like to thank Finance Minister Wolfgang Schäuble and Bundesbank President Jens Weidmann, the German authorities, and the people of the beautiful town of Baden-Baden for their generous hospitality and superb organization. I look forward to the Hamburg G20 Summit in July.”