Global economy on strong cyclical recovery: IMF

“The cyclical recovery in the global economy is going from strength to strength. The signs point to faster growth across all regions,” International Monetary Fund’s (IMF) First Deputy Managing Director David Lipton said at the Asian Financial Forum. Addressing the Forum’s 11th edition, he also said that India was reclaiming its place as a growth leader. 

“India is reclaiming its place as a growth leader after a short slowdown,” Lipton told about 3,000 delegates from the world over participating in the twoday event, being held at the Hong Kong Convention Centre in the downtown. Announcing that the multi-lateral lending agency IMF would give its world economic outlook for 2018 next week, he said the global economy was in a late stage of recovery from the global financial crisis of 2008. 

“With economic slack in advanced economies diminishing, it is not clear how long the good news will continue. “Now is the time to address vulnerabilities and structural issues that could impede sustained growth, and to take steps to enable stronger growth once cyclical growth is no longer driving the economy,” he said. The “sun is shining” on the global economy with rising investments and consumer demand, he said. Investments are lifting world trade at a rate above the Gross Domestic Product (GDP) growth, the IMF official noted.

India is missing at the Asian Financial Forum (AFF) event here, ostensibly because its ministers and officials have opted for the World Economic Forum (WEF) at Davos in Switzerland later this month, an official said. “Indian ministers and officials declined our invite citing lack of time as they have to go for Davos for the fourday WEF from January 23-26,” a Hong Kong Trade Development Council (HKTDC) official said. Preparations and meetings for the 2018-19 Union Budget presentation on February 1 has also been cited as another reason for the conspicuous absence of India at the 11th edition of the two-day financial summit being held at Hong Kong Convention Centre in downtown.