Investing.com - International Monetary Fund (IMF) deputy chief David Lipton warned on Tuesday that the global economic recovery was at risk of becoming derailed and urged global leaders to take coordinated action.
“Global economic recovery continues, but we are clearly at a delicate juncture, where risk of economic derailment has grown,” Lipton told an audience in Washington, D.C. on Tuesday.
The IMF deputy chief insisted that the Fund’s latest reading showed a “weakening baseline” with volatile financial markets and low commodity prices “creating fresh concerns about the health of the global economy”.
He suggested that the concerns were based on a perception that policymakers had either run out of ammunition or lost the will to deploy it.
“For the sake of the global economy, it is imperative that advanced and developing countries dispel this dangerous notion by reviving the bold spirit of action and cooperation that characterized the early years of the recovery effort,” Lipton suggested.
Among the solutions, he stressed the need for monetary and fiscal policies, along with structural reforms in order to strengthen world-wide economies and guard against risks and further pleaded for a “collective global action” in this regard.