World Economy Recovery, still Facing Challenges: IMF Lipsky

Moderate world economy is underway, despite obvious risks and challenges such as the need for medium-term fiscal consolidation, according to a top official from the IMF.

The world’s economy is recovering moderately but still faces challenges such as the need for medium-term fiscal consolidation, the International Monetary Fund’s First Managing Director John Lipsky said in Korea on Sunday.

Lipsky, together with deputy finance ministers and deputy central bank governors, was in Korea for talks paving road for G20 Summit that will be held in November.

“They are mainly confident that there is a moderate recovery underway globally,” he told reporters, referring to delegates at the G20 meeting.

“Obviously there are risks and challenges, but things seem to be moving more or less in line with our forecast,” he said.

He also said there was progress in talks on changes to the IMF’s executive board, but did not elaborate. Last month, the United States voted against the proposal of the distribution of executive board and suggested more voices for emerging economies to be accord with their contributions and rising importance in making policies. IMF is currently under dominance of the European continent.