WASHINGTON (Reuters) – The International Monetary Fund’s steering committee yesterday urged member countries to boost “growth-friendly” spending and said the Fund should explore new lending tools to help deal with slowing global growth.
IMF Managing Director Christine Lagarde said that calmer markets since February had reduced the stress level at the IMF and World Bank spring meetings here, but the outlook was still fraught with downside risks from weak demand, a potential UK exit from the European Union and low oil and commodity prices.
“There was not exactly the same level of anxiety but I think there was an equal level of concern, and a collective endeavor to identify the solution and the responses to the global economic situation,” Lagarde told a news conference.
She described the gatherings, along with a Group of 20 finance ministers and central bank governors meeting on Friday, as “collective therapy” to deal with the gloomy prospects. The IMF cut its global growth forecasts earlier this week for the fourth time in a year.