TEMPO.CO, Jakarta - International Monetary Fund (IMF) Managing Director Christine Lagarde called for the 189 countries that were present in the IMF-World Bank 2018 plenary meeting to put forth the spirit of cooperation in facing the global economic challenges.
According to Lagarde, the first challenge is posed by trade relation tensions that the IMF predicts will directly cause a potentially reduced gross domestic products or the global economic growth by one percent in the next two years.
Christine Lagarde argued that no country can survive overcoming the economic condition alone, especially in an integrated world like today.
Another challenge that should not be set aside is the potentially increasing debt vulnerability. As IMF’s records state that the total government and global private areas' debt reaches USD 182 trillion which is 224 percent compared to the global gross domestic product, a 60 percent increase compared to the situation back in 2007.
Christine Lagarde reminded policy makers to strengthen their country’s economic resilience with a financial safety net. "One of it is by improving their domestic economy," said the IMF Managing Director.