IMF's Koehler Anticipates 4.75% Global Growth for 2000
August 9, 2000 - 0:0
TEHRAN Global economic growth is set to reach 4.75 percent this year, AFP quoted International Monetary Fund (IMF) Managing Director Horst Koehler said Monday. "The outlook for the world economy is the best we have seen in over a decade.
The IMF staff expects the global economy this year as a whole to grow by about 4.75 percent," Koehler said. The IMF's previous forecast in May was 4.2 percent growth rate, compared with economic growth of 3.3 percent in 1999. In his first U.S. public address since he took over as IMF chief from French national Michel Camdessus on May 2, Koehler, of Germany, said: "A major engine driving this is undoubtedly the unprecedented non-inflationary growth in the U.S. economy." He said economic growth and structural reforms have accelerated in Europe, but advised Europeans to "be even more ambitious with reforms, so that they can also reach a medium-term growth path well above 3.0 percent.
" Koehler pointed out that evidence exists that U.S. growth "is slowing down to a more sustainable pace and thus I trust in a soft landing." Emerging-market countries, meanwhile, "are now also experiencing strong growth," after being hit by the Asian financial crisis. Looking ahead to the IMF's annual meetings next month, Koehler said he will outline his "vision" for the future role of the IMF, which will bring a refocusing of the institution's priorities. "The fund has been overstretched in the past, and needs to refocus ... to promote macroeconomic stability and growth," Koehler said.
The IMF's Executive Board retreated some weeks ago to discuss numerous proposals geared to adjusting the IMF's role in the global economy. "My ambition for the fund is not to have more and more programs for more and more countries," said Koehler in the first comments issued since the IMF carried out its self-examination.
In another AFP report, Koehler said the organization had got off to a good start in its relations with Russian President Vladimir Putin. "Part of the mistakes we made (with Russia in the past) was because we had been too euphoric, relying just on rhetoric about reform programs," he said.
"I do think that we have a good start with President Putin, but my recommendation is to look carefully (at) what is implemented," he concluded. He said that an IMF team would go to Russia in September.
The IMF staff expects the global economy this year as a whole to grow by about 4.75 percent," Koehler said. The IMF's previous forecast in May was 4.2 percent growth rate, compared with economic growth of 3.3 percent in 1999. In his first U.S. public address since he took over as IMF chief from French national Michel Camdessus on May 2, Koehler, of Germany, said: "A major engine driving this is undoubtedly the unprecedented non-inflationary growth in the U.S. economy." He said economic growth and structural reforms have accelerated in Europe, but advised Europeans to "be even more ambitious with reforms, so that they can also reach a medium-term growth path well above 3.0 percent.
" Koehler pointed out that evidence exists that U.S. growth "is slowing down to a more sustainable pace and thus I trust in a soft landing." Emerging-market countries, meanwhile, "are now also experiencing strong growth," after being hit by the Asian financial crisis. Looking ahead to the IMF's annual meetings next month, Koehler said he will outline his "vision" for the future role of the IMF, which will bring a refocusing of the institution's priorities. "The fund has been overstretched in the past, and needs to refocus ... to promote macroeconomic stability and growth," Koehler said.
The IMF's Executive Board retreated some weeks ago to discuss numerous proposals geared to adjusting the IMF's role in the global economy. "My ambition for the fund is not to have more and more programs for more and more countries," said Koehler in the first comments issued since the IMF carried out its self-examination.
In another AFP report, Koehler said the organization had got off to a good start in its relations with Russian President Vladimir Putin. "Part of the mistakes we made (with Russia in the past) was because we had been too euphoric, relying just on rhetoric about reform programs," he said.
"I do think that we have a good start with President Putin, but my recommendation is to look carefully (at) what is implemented," he concluded. He said that an IMF team would go to Russia in September.