IMF's Lagarde Warns G20 to Miss Growth Targets

G20 nations are unlikely to meet the collective growth target of 2% by 2018, said Christine Lagarde, the managing director of the International Monetary Fund.

"According to our preliminary assessment with the OECD, the commitments made to date as part of these strategies have the potential to raise the collective GDP of the G20 by about 1.8% by 2018, compared to the 2% goal set earlier this year in Sydney," Lagarde said.

Her statement followed a meeting of the Group of 20 finance ministers and central bank governors in Cairns, Australia.

The IMF chief said global growth still remains uneven and called for fresh initiatives.

"Despite the global recovery continuing, the pace of growth remains low and uneven, in part given increased geopolitical tensions and risks of financial market turmoil. Promoting economic policies that can contribute to a more robust and job-rich recovery is therefore critical at this stage."

The IMF is ready to help in monitoring country-led efforts for effective implementation of fiscal and monetary policies, she said.

"Determined implementation will be crucial in the years to come, and while this process should remain country led in the spirit of the G20 effort, the IMF is ready to help in monitoring the effort."

The fund will continue to support sound monetary and fiscal policies, including through the analysis of spillovers, to promote broad and equitable growth.

The IMF has also been asked to help the G20 work on a global response to cross-border tax avoidance and evasion that will support growth-enhancing fiscal strategies, Lagarde said.

"I note the G20 call for progress in making effective the IMF's 2010 Quota and Governance Reform. We share the sense of importance of rapid progress and implementation, and urge our member countries to complete the reform."