Jim Yong Kim, who took over as World Bank president said his first task will be to help emerging markets keep expanding at a time of stress for the world economy.
New IMF Managing Director Christine Lagarde pledged to push ahead with reforms to give fast-growing emerging markets greater sway at the global lender and said the world economy was on the rebound.
The outlook for government debts and deficits in 2011 is a mixed bag, with most advanced economies reining in fiscal deficits, but not fast enough to keep their debt from rising. Fiscal balances are improving in most emerging economies, and some could do more as they experience a windfall from high commodity prices and strong capital flows.
Negotiators have failed to agree targets to reduce global economic imbalances on the first day of the two-day G20 meeting in Paris. The countries want to better coordinate economic policies to avoid a repeat of the 2008 global financial crisis.
Nouriel Roubini the New York University professor, who predicted the credit crisis, said China and other emerging markets risk a “hard landing” as they start raising interest rates to fight inflation.