A NEW STUDY HAS FOUND THAT COUNTRIES WHICH SOUGHT FINANCIAL ARE EXPERIENCING A RETURN TO GROWTH.

A NEW STUDY HAS FOUND THAT COUNTRIES WHICH SOUGHT FINANCIAL SUPPORT FROM THE INTERNATIONAL MONETARY FUND (IMF) IN LATE 2008, AFTER THE FAILURE OF THE LEHMAN BROTHERS INVESTMENT BANK, ARE EXPERIENCING A RETURN TO GROWTH.

THE FINANCING PROVIDED BY THE IMF HELPED COUNTRIES STABILIZE THEIR ECONOMIES AT A TIME WHEN THEIR ACCESS TO FINANCIAL MARKETS WAS SERIOUSLY CURTAILED.

BUT RISKS REMAIN, THE STUDY FINDS STATING THAT MANY COUNTRIES NEED FURTHER FISCAL CONSOLIDATION, AS JOB CREATION IS LAGGING BEHIND THE RECOVERY, AND THE POLITICAL WILL TO IMPLEMENT FURTHER DIFFICULT REFORMS IS FLAGGING―AT A TIME WHEN MORE REFORMS ARE URGENTLY NEEDED TO RESTORE COMPETITIVENESS.

A SECOND GROUP OF COUNTRIES APPROACHED THE IMF FOR FINANCIAL SUPPORT IN 2010–11.

IMF SAYS FURTHER FISCAL CONSOLIDATION TO REDUCE HIGH PUBLIC DEBT WILL BE NEEDED FOR YEARS TO COME AND REFORMS TO IMPROVE THE GROWTH POTENTIAL OF THE ECONOMIES WILL REQUIRE STRONG SOCIAL COHESION AND NATIONAL UNITY.

THE STUDY, CONDUCTED BY THE IMF’S STRATEGY, POLICY, AND REVIEW DEPARTMENT, ENCOMPASSED 29 COUNTRIES WITH IMF-SUPPORTED PROGRAMS.

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