International Monetary Fund (IMF) Managing Director Christine Lagarde stressed how to ensured the effectiveness and sustainable financing of international development. She said the focus of the world today is on sustainable debt for sustainable growth.
Noting the increasing global challenges nowadays, especially when the United States (US)-China tariff war negotiations deteriorate, Lagarde warned the countries to significantly increase spending to meet Sustainable Development Goals (SDGs) by 2030.
She added, the additional expenditure needs in key areas such as health, education and priority infrastructure represent an average of 15% of GDP in low-income developing countries – which is equivalent to around half a trillion US dollars in 2030.
Lagarde issued a warning about the threat trade tensions pose for the world economy and said it may take time for the US and China to resolve their issues. The comments came two days after tweets by US President Donald Trump warning of new tariffs on China, marking an escalation of hostilities amid talks aimed at brokering a solution between the two countries.