Global Recovery Taking Root

International Monetary Fund Managing Director Christine Lagarde said that global economic recovery is taking root, Reuters reported. Some industries in advanced countries had been affected by free trade and measures have to be taken to tackle such effects, Lagarde said at the Boao Forum for Asia in China’s southern Hainan province. The global economy continues to strengthen on the back of investment and trade, with capital flows to emerging markets remaining resilient and US tax reform expected to boost growth temporarily, IMF Deputy Managing Director Mitsuhiro Furusawa said at the same forum. The current upswing provides an ideal opportunity for reforms to boost potential output, build resilience, and ensure the benefits of growth are shared more widely, he said in a speech on Tuesday. “This will require strategies to ensure fiscal sustainability and financial resilience,” Furusawa said at the high-level tax conference for Asian countries. He made no mention of US trade policy.