By Omoh Gabriel

Managing Director of International Monetary Fund, IMF, Ms Christine Lagarde, yesterday, said that a three-pronged approach with monetary, fiscal and structural actions, taken in concert by the membership, could work as a virtuous trinity, mutually reinforcing economic activity and reducing stability risks.

She said that decisive action and durable growth were equally needed for the global economy to stabilise.

In her opening speech at the ongoing IMF/World Bank Spring Meetings, Lagarde said: “Each country should commit to a set of policy actions—as determined by available policy space—that contributes to a global package of reforms to lift both national and global growth.

“A three-pronged approach with monetary, fiscal and structural actions, taken in concert by the membership, can work as a virtuous trinity, mutually reinforcing economic activity and reducing stability risks. Global cooperation is also needed.

“Examples include enhancing mechanisms for adjustment and liquidity provision, shoring up global trade, tackling corruption and furthering the regulatory reform agenda.”

Giving insight into the state of the global economy, she said: “The global economy is expanding moderately, but the outlook has weakened further since October, and risks have increased.

“The global economy has been impaired from growth that has been too slow for too long, and at this rate a sustained recovery—with the expected higher living standards, lower unemployment and declining debt levels—may not be delivered.

“However, some recent improvement in data releases, somewhat firmer oil prices, reduced pressu-res on outflows from China, and actions by major central banks have all contributed to improving sentiment.”