Nations Must Preserve Growth Amid Fiscal Adjustments: IMF's Shinohara

International Monetary Fund Deputy Managing Director Naoyuki Shinohara on Friday said that countries across the globe should be careful that policies to address fiscal imbalances do not restrain economic growth.


"One of the most immediate global policy challenges is to address medium-term fiscal imbalances while being careful not to kill growth," he said citing a statement in IMF's latest edition of World Economic Outlook and Fiscal Monitor.

The immediate need for fiscal adjustments in many advanced economies must be complemented by credible medium-term deficit-reduction plans and by reforms that can stimulate growth, he said during a speech in Tokyo.

Shinohara added that a tax policy is an important instrument in this case.