Christine Lagarde and the IMF have left Mexico City with an agreement but Ms. Lagarde says “world economy is still now out of the danger zone.”
Ms. Lagarde issued a communique after the G-20 meeting in Mexico City and said that “G-20 countries must now strengthen resilience to further shocks that could result from still fragile financial systems, high public and private debt, and higher world oil prices. Of equal concern is unemployment, which is still too high in many countries.” IMF
In a summary note for the G-20 Finance Ministers Meeting, the IMF said:
The global recovery suffered a setback and despite recent improvements remains subject to major downside risks.
Risks to global growth remain squarely to the downside, although recent policies and financial market developments have lowered the probability of a sharp global slowdown.
The euro area must build on recent measures and act decisively on multiple fronts to achieve a successful resolution to the crisis.
In other advanced economies, there remains an urgent need to set out a credible path for fiscal consolidation over the medium term.
In emerging economies, the priority is to ensure a soft landing as domestic growth slows amid a deteriorating external environment and volatile capital flows.
Collective action to address global imbalances can help ensure a return to strong, sustainable, and balanced growth.
Europe ETF Summary:
CurrencyShares Euro Trust (NYSEARCA:FXE) +o.11% as the Euro strengthened as the Greek bailout progressed.