Global economy back from “abyss” - IMF chief

PanARMENIAN.Net - IMF chief Christine Lagarde said Tuesday, March 20 the global economy has moved back from the "abyss" but that there are still serious weakness in the world financial system, AFP reported.

Lagarde, visiting New Delhi for a two-day trip to attend a conference and meet leaders, said the world financial situation is not as grave as at the start of this year.

The International Monetary Fund (IMF) managing director said steps by the European Central Bank and some European countries had helped stabilise the overall situation but there were still areas "that need to be attacked with vigour", such as shoring up financial institutions.

The global financial crisis has been a "huge catalyst" to get political leaders to take politically unpopular measures to restore economic health, she said.

Most European Union nations agreed in January to a treaty that will require governments to introduce laws on balanced budgets and sanctions on countries that violate deficit rules.

For emerging market giant India she said priorities had to be development of its dilapidated ports, airports and other infrastructure in order to remove bottlenecks to economic growth and narrowing its ballooning fiscal deficit. And she added that export-led China needed to improve its social safety net to spur greater domestic spending and bolster growth.