WASHINGTON (AFP) - The United States should cuts its fiscal and trade deficits, while Europe and Japan should take steps to boost economic growth, IMF managing director Rodrigo Rato revealed.
"This relatively benign global outlook provides an important window of opportunity for further progress in addressing global imbalances and reinforcing the basis for more balanced and sustainable global growth," Rato said Monday in a speech prepared for delivery to the Council of Foreign Relations in New York.
"This requires active efforts by the United States to reduce its fiscal and external deficits, and by the European Union and Japan to promote more vigorous growth through structural reforms."
Rato said the rest of the world too must address economic reforms to help sustain momentum.
"In middle income countries, continuing efforts are needed to deepen progress in reducing vulnerabilities and to set the stage for sustained growth in output, job creation and poverty reduction," he said.
"And, in low-income countries, all of us -- the international community and the countries themselves -- should work for faster progress in reinforcing the framework for growth and poverty reduction."