Global recovery 'remains uncertain'
Published 31/10/2012 | 05:00
GLOBAL economic recovery remains uncertain, making budget and structural reform necessary to revive growth, Germany said in a joint statement with the IMF and OECD.
"Because of modest growth prospects and considerable uncertainty, financial markets, investor and household confidence has not yet returned to pre-crisis levels," the statement said.
It came after talks yesterday in Berlin between the head of the IMF Christine Lagarde, German Chancellor Angela Merkel and Angel Gurria, head of the Organisation for Economic Co-operation.
Lagarde said during a joint press conference governments of leading economies should continue fiscal consolidation at a "sensible pace" to address debt long term.
She also advised emerging economies to "loosen their monetary and fiscal tightening to accommodate what growth there is".
All three urged the eurozone to boost growth and competitiveness through reforms and the United States to present a convincing fiscal consolidation course. They welcomed efforts by some euro states to boost their competitiveness and bring down budget deficits.