IMF managing director Christine Lagarde told a news conference in Washington that the global recovery is “moderate and uneven” and that current growth is not enough to reduce unemployment and boost incomes.
Ahead of the 2015 IMF World Bank Spring Meetings, Ms Lagarde said: “So the good news is that the global recovery continues. The not-so-good news is that growth remains moderate and uneven.”
According to the IMF’s updated forecasts, the global economy is expected to grow at 3.5 per cent this year, in line with last year, and to grow at 3.8 per cent next year.
She said: “We also need to lift the rate at which economies can grow over the medium term. Potential growth rates are going down, and this is in part because of changing demographics, lower productivity and, in some countries, the legacy of the crisis.”
It follows a report published by the IMF yesterday which warned that financial stability risks have risen.
Participants at the meetings in Washington are set to discuss measures to help lift growth.
Ms Lagarde added: “We need to continue reforming the international monetary system to make it more resilient, including efforts to better integrate fast-growing emerging markets.”
