Davos: In order to keep up the recovery momentum in the world economy, International Monetary Fund chief Christine Lagarde on Saturday asked countries and their leaders to follow the 'do not relax' principle and not let complacency come into their efforts. "I will pursue with 'do not relax' principle. The forecast is for a very fragile recovery in 2013 and that is why I will emphasise on do not relax," Lagarde said here at the World Economic Forum (WEF) Annual Meeting.
Speaking at a session on the global economic outlook, she said central banks across the world have taken some tough decisions in the recent past and some political leaders are also doing their part on recovery process. "Some difficult decisions are still due in the US and Europe. The competitiveness of Eurozone has to be there," she said, adding that growth has certainly picked up in the US.
"For emerging economies, particularly China, re-balancing the business model towards more domestic and more consumption-oriented and less export-focused is going to be there," the IMF Managing Director said. The panelists noted that the recovery process has only began and was far from over. In emerging countries like China, growth rate has come down, while others like India were under performing, they added.
Lagarde asked countries and their leaders to follow the 'do not relax' principle and not let complacency come into their efforts.