IMF Managing Director Christine Lagarde sounded more optimistic about the world economic outlook after a long and sluggish recovery, imploring countries not to retreat from the postwar push for increased trade and cooperation.
The global economic recovery is gaining momentum as businesses ramp up production, though policy makers must guard against imposing new trade barriers, Lagarde said.
“The good news is that, after six years of disappointing growth, the world economy is gaining momentum as a cyclical recovery holds out the promise of more jobs, higher incomes, and greater prosperity,” Lagarde said Wednesday in a speech in Brussels ahead of the fund’s annual spring meetings next week in Washington.
“But just as we see this momentum unfolding, we also see — at least in some advanced economies — doubts about the benefits of economic integration, about the very architecture that has underpinned the world economy for more than seven decades,” the head of the International Monetary Fund said.
The outlook in advanced economies has improved, driven by stronger manufacturing activity, Lagarde said. Meanwhile, higher commodity prices have brought relief to many low-income countries, she said.