The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development on Thursday pointed out that boosting inclusive growth remains the priority and key to raising living standards and lifting many out of poverty.
By Alpha Bedoh Kamara
According to the Thursday Communique’, though economic activity in emerging markets and developing countries are uneven across countries, growth is expected to strengthen.
“Emerging markets and developing countries will continue to contribute the bulk of global growth. However, downside risks from economic and non-economic sources remain high, including sharper than the expected tightening of global financial conditions, a potential turn to inward-looking policies, and a reversal of financial regulatory reforms in systemically important advanced economies (AEs)”.
The ninety-seventh meeting, held in Washington D.C. on April 20, 2017, presided by the Chairman Abraham Tekeste, Minister of Finance and Economic Cooperation of Ethiopia; Ravi Karunanayake, Minister of Finance of Sri Lanka as First Vice-Chair; and Julio Velarde, Governor of the Central Bank of Peru as Second Vice-Chair, emphasized the vital importance of scaling up investments in quality infrastructure to deliver on the growth and sustainable development agenda.
Boosting inclusive growth remains the priority and key to raising living standards and lifting many out of poverty, while investment growth, which has declined significantly in recent years, to be reinvigorated.
The IMF stakeholders noted that achieving these goals require maintaining macroeconomic stability and continuing to strengthen fiscal, structural, and governance reforms tailored to country circumstances.
“We will use all policy levers to ensure that the benefits of growth are shared widely and to reduce high levels of income inequality. We call on the International Monetary Fund (IMF) and the World Bank Group (WBG) to support countries’ efforts in achieving inclusive growth”.
The stakeholders also said that international commitment is essential in implementing the Paris Agreement on Climate Change, including by ensuring the availability of the necessary concessional financing.
“We look forward to developed countries delivering on their commitment to provide US$100 billion per year additional financing by 2020 to support EMDCs’ climate actions.”