Global Economic Recovery "Gaining Momentum" but Growth "Modest"

The International Monetary Fund reiterated that the global economic recovery is "gaining momentum, commodity prices have firmed up, and deflation risks are receding.

" According to the Communique of the 35th Meeting, the International Monetary and Financial Committee (IMFC) said while the outlook is improving, growth remains "modest and subject to heightened political and policy uncertainties.

"Crisis legacies, high debt levels, weak productivity growth, and demographic trends remain challenging headwinds in advanced economies; while domestic imbalances, sharper-than-expected financial tightening, and negative spillovers from global uncertainty pose challenges for some emerging market and developing countries," it affirmed.

The Committee reinforced its "commitment to achieve strong, sustainable, balanced, inclusive, and job-rich growth," and to communicate policy stances clearly, avoid inward-looking policies, and preserve global financial stability.

It recognized that "excessive volatility and disorderly movements" in exchange rates can have adverse implications for economic and financial stability.

"We will refrain from competitive devaluations, and will not target our exchange rates for competitive purposes," committee members said.

"We will also work together to reduce excessive global imbalances by pursuing appropriate policies.

We are working to strengthen the contribution of trade to our economies," according to the communique.

It affirmed the IMFC "will support countries dealing with the consequences of conflicts, refugee and humanitarian crises, or natural disasters.

We will work to promote a level playing field in international trade and taxation; tackle the sources and channels of terrorist financing, corruption, and other illicit financial flows; and address correspondent banking relationship withdrawal

. " The IMFC called on the International Monetary Fund (IMF) to promote policies that will expand opportunities, facilitate multilateral solutions to meet global challenges, assist low-income countries, commodity exporters, and small and fragile states and promote sustainable policies over time.

It reaffirmed commitment "to a strong, quota-based, and adequately resourced IMF to preserve its role at the center of the (Global Financial Safety Net) GFSN.

" Furthermore, it welcomed the bilateral agreements and commitments of about USD 400 billion received from 35 members to ensure the IMF's continued access to bilateral borrowing under the strengthened governance framework approved by the Executive Board. It called for broad participation of the IMF membership including through new agreements, and also welcomed the renewal of the decision on the New Arrangements to Borrow.

The IMF Board of Governors is advised by two ministerial committees, the IMFC and the Development Committee.

The IMFC has 24 members, drawn from 187 governors and it represents all the member countries of the Fund.