Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today after the conclusion of the Group of 20 Leaders’ Summit in St. Petersburg, Russia:
“I would like to thank President Vladimir Putin and his team for hosting us in the magnificent historic setting of St. Petersburg. Our discussions advanced the dialogue among G-20 Leaders about the significant challenges facing the world economy and the policy actions needed to strengthen the global economic recovery.
“As noted by the Leaders, coordinated action has done much to stabilize the world economy and the financial system. Leaders also recognize that much remains to be done to get the world economy working better. Global growth remains subdued, its underlying dynamics are changing, and market volatility and stability risks persist. Just as some advanced economies have begun to gather momentum, many emerging markets are slowing, and policy makers are grappling with challenges arising from domestic and external developments. Unemployment, in particular among young people, also remains high in many countries.
“I welcome the St. Petersburg Action Plan that stresses the importance of cooperation as countries address these challenges of promoting global growth, jobs, and financial stability. The action plan recognizes the need for fiscal consolidation to reflect economic conditions, the need to push forward on financial oversight and regulation, and the importance of comprehensive structural reforms to support growth.
“It is also right that monetary policy remain supportive where appropriate. I am pleased that the G-20 recognizes the need to ensure that exit from unconventional monetary policy, when it comes, should be orderly and clearly communicated. Both advanced economies and emerging markets will have to address their domestic challenges in order for spillovers to be effectively managed. The IMF will continue to engage in these areas given their significant implications for the global economy.
“Let me also note the discussions on tax evasion and tax avoidance where I want to applaud the progress that was made. International taxation is another area where the Fund will be actively engaged.
“Lastly, I welcome G-20 support for completing the IMF’s 2010 quota reform agreement, and I urge the few remaining countries to quickly ratify the measures necessary to implement this important agreement. Completing this reform would contribute greatly to the evolution of IMF governance and help ensure that it better reflects the global economic reality.
“I look forward to productive discussions on these vital issues at the October Annual Meetings in Washington.”