Finance ministers and central bank governors finished the spring meetings of the IMF in a more positive mood, saying that global growth was likely to “firm up” in coming months, leading to an improved outlook in 2020.
The Financial Times reports that having started the week with downgrades to forecasts for the global economy, the closing communique reflected a pervasive view of ministers that the fund had been a little too gloomy in its prognosis.
“The ministers and central bank governors on the IMF’s governing body stressed that there remained significant risks for growth from trade tensions, a lack of clear tools to deal with any downturn that might arise and potential shocks such as Brexit, but still expected the economic data to improve.”
Meanwhile Lagarde was reported saying that government respect for the independence of central banks has served them well in their mission.
The IMF managing director’s remarks come as some central bankers around the world face increased pressure to bend to the objectives of political leaders and heads of state, according to CNA.