Countries must put their houses in order to face a world of uncertainty: IMF chief

ECONOMYNEXT - As the global giants - China, the EU, and the United States - face off, smaller countries caught in the crosscurrents must redouble efforts to put their own houses in order, the International Monetary Fund head has said.

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"All countries must redouble efforts to put their own houses in order. In a world of higher uncertainty and frequent shocks, there is no room for delay in reforms to enhance economic and financial stability and improve growth potential," Kristalina Georgieva, IMF Managing Director said.

Economies face the new challenges from a weaker starting position, with public debt burdens that are much higher than just a few years ago,she said addressing the Spring Meetings of the World bank Group in Washington DC.

"As such, most countries must take resolute fiscal action to rebuild policy space, setting out gradual adjustment paths that respect fiscal frameworks.

Some countries, however, may experience shocks necessitating renewed fiscal support, she said, "this, if it must be provided, should be targeted and temporary."

Tighter budget constraints will entail difficult choices everywhere especially in low-income countries, Georgieva said.

"Here, weak revenues necessitate stronger efforts for domestic resource mobilization, but also call for support from international partners-both to improve capacity for reforms and to secure crucial financial assistance.

"The IMF will help countries manage macroeconomic adjustment and advance reforms." Currently, 48 countries rely on IMF balance of payments support.

"Reforms and rebalancing are for everyone. From ASEAN to the Gulf Cooperation Council, across the African continent and elsewhere, policymakers are taking action to strengthen their economies, improve regional ties, and reduce surpluses and deficits," Georgieva said, adding, "We strongly support these efforts." The full speech is reproduced below: Toward a Better Balanced and More Resilient World Economy Good morning and a very warm welcome to everyone! And thank you again, Maria, for your kind introduction.