(MENAFN- Kuwait News Agency (KUNA)) The International Monetary Fund (IMF) affirmed on Saturday that the global economy was recovering gradually but risks remain high.
"The global economy is recovering gradually. Since we last met, important policy actions have been taken in the euro area, both at the national and regional levels, including through an enhancement of the European firewall.
Economic indicators in the United States have improved", said the International Monetary and Financial Committee (IMFC) in the communique after its 25th meeting in Washington.
"Emerging market and developing countries on the whole remain a source of strength for the world economy. But more remains to be done. The outlook remains one of moderate growth globally, and risks remain high. We will continue to act collectively to restore confidence, rekindle growth, and create jobs", added the communique.
IMF officials and members of the G-20 countries pledged on the margin of the World Bank-IMF spring meetings USD 430 billion to increase the available resources of the Fund.
"We remain committed to take the necessary actions to secure global financial stability. We welcome the euro area members' decisions in March to strengthen European firewalls as part of broader reform efforts and the availability of central bank swap lines", noted the communique.
The IMFC urged advances economies to "achieve credible fiscal consolidation and government debt reduction, while avoiding excessively contractionary fiscal policies. Where conditions permit, automatic fiscal stabilizers should be allowed to operate".
It noted, in return, that the emerging market and developing countries continue to grow while facing spillovers from the advanced economies and "ongoing stresses in Europe, high and volatile oil and commodity prices, and large and volatile capital flows pose significant policy challenges".
The next IMFC meeting will be held in Tokyo on October 12-13, 2012.
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