IMF chief stresses structural reforms

SHANGHAI - China is not the only economy in need of structural reforms as they are fundamental for the success of every G20 economy, Christine Lagarde, managing director of the International Monetary Fund (IMF), said on Friday.

This was clearly recognized in the "G20 2009 framework for strong, stable, and balanced growth," she said at the G20 Finance Ministers and Central Bank Governors Meeting in Shanghai.

Structural reforms have become even more pressing given the disappointing state of the global recovery. Activity weakened unexpectedly at the end of last year, which led the IMF to revise growth downward for this year and beyond, she noted.

"In this fragile environment, we need urgent action not only to boost economic potential, but also to boost confidence about the recovery and near-term growth," she said.

She called on all G20 countries to speed up the implementation of structural reforms that they committed to under the G20 growth initiative.