TORONTO (Reuters) - Canada can lead the process of global economic recovery by setting standards for other countries to aspire to, the International Monetary Fund’s Managing Director Christine Lagarde said on Tuesday.
Speaking at an event organized by the C.D.Howe Institute think tank, Lagarde praised Prime Minister Justin Trudeau for adopting the IMF’s three-pronged approach of taking monetary, fiscal and structural action to avert the risk of recession
“There’s nothing like setting standards. There is nothing that I would hope for more than Canada succeeding in that three-pronged approach. It seems to me that Canada can actually lead that process,” Lagarde said.
“The prime minister’s enthusiasm, passion and very articulate indication at the G20, for instance, of what the policy mix is going to be is a good step in that direction,” she added.
Trudeau has committed to doubling federal infrastructure spending to C$120 billion over the next 10 years to stimulate Canada’s sluggish economic growth. However, the country’s economy still faces serious challenges.
The Bank of Canada warned this month that Canada’s economic performance could be weaker than it anticipated just two months ago with exports disappointing, but the central bank stuck to a forecast that growth will bounce back in the second half.
Lagarde also addressed a growing public backlash against free trade and globalization, calling on Tuesday for more inclusive growth which reduces economic inequality and benefits workers from all economic sectors.
Editing by David Gregorio