The global economy is showing significant signs of improvement, according to International Monetary Fund (IMF) Director Christine Lagarde. Lagarde traveled to Beijing this week to discuss the economic improvements that are being seen all over the world. Much of the improvements come from bold moves made in the insurance industry as a way to remedy the European financial crisis. With the help of insurers and reinsurers, the European Union was able to conduct the largest debt restructure in history and pull Greece from the brink of economic calamity.
Lagarde notes that there are still risks ahead that could compromise progress. These risks include high debt levels in developed markets such as the U.S. and China as well as inflating oil prices. Though the insurance industry has helped achieve a major victory in the fight against economic collapse, insurers can only do so much. Lagarde claims that continued international cooperation is the key to solving the problem and putting an end to the crisis.
Lagarde paid special respect to China during her trip to Beijing. The IMF Director noted that the global economic crisis could have been profoundly worse if China had not shown surprising cooperation and policy aptitude to promote growth and sustainability. The IMF claims that there are still significant challenges to overcome before the global economy can recover from the crisis. If insurers and governments continue to work together, however, the end to the crisis may come much sooner than expected.