Editor in Chief: Moh. Reza Huwaida Saturday, October 20th, 2018

Europe, U.S. Need More Economic Stimulus: IMF

Europe, U.S. Need More Economic Stimulus: IMF

BERLIN - The United States and European countries should mull new stimulus measures to shore up their economies, International Monetary Fund (IMF) chief Christina Lagarde said Sunday.
In an interview with the Spiegel magazine, she said there are fears about another financial crisis, but the gloom can be averted if governments collaborate.

Lagarde said the current problems are from low economic growth and high government debt, both of which "lower confidence in entire countries and sap the strength of their banking system, especially if the banks hold large volumes of government debt."She added that the IMF forecasts this summer showed the world economy would suffer damage if confidence is not restored.

Lagarde urged European countries to adjust the austerity policy and adopt new measures to re-energize the growth.

She also wished the United States could propose a credible medium-term growth plan to make room for new economic stimulus package.

The IMF chief again warned of the debt crisis risk, which has trapped eurozone countries over the past months and called for a massive recapitalization of Europe's banks. (Xinhua)