IMF chief warns against protectionism

Lagarde says ‘opening barriers’ is always a welcome step

IMF chief cautioned against any measure that may stifle international trade, saying any such step would undermine the recovery in global economic growth.

Speaking at a session on remaking of global finance here at the World Economic Forum (WEF), Lagarde said, “We are certainly seeing two clear engines of growth. One is investment which is growing pretty well and the other is international trade that is growing even faster than the global economic growth.”

She said there is a need to fire on all cylinders for sustained growth and trade is a very important part of that and any measure that seeks to restrict trade will hurt growth in a big way.

Asked whether she was being diplomatic by not directly mentioning the steps underway in the US, Lagarde said, “Who will agree with measures that impacts trade adversely? Opening barriers under a rulesbased system is what is always a welcome step.”

US Treasury Secretary Steven Mnuchin said the foremost economic agenda of President Donald Trump has been to ensure sustained economic growth and one can see the positive reaction from the British Prime Minister Theresa May Thursday said the UK will continue to be an advocate of free trade even after moving out of the European Union but lamented that all the rhetoric by the international community here at the WEF is not matched by necessary actions.

Delivering a special address at the World Economic Forum (WEF) annual meeting, May said global growth continues to improve since she came here last year and that is a reason for optimism.

However, there is a need to act decisively to help people benefit from global growth and help them secure the jobs of tomorrow, she said. PTI

stock markets. “Our objective is to ensure wage growth and that is a big focus of what we are doing,” he said. Besides, the US is getting a great response from international companies and everyone knows the country is open for doing business and we could not be more pleased with this, he added.