The managing director, International Monetary Fund ,Christine Lagarde says sharp swings in global financial markets in the past few days are not worrying since economic growth is strong, but reforms are needed to avert future crises.
Lagarde made this known while speaking at a conference on global business and social trends in Dubai.
She added that economies were supported by plenty of financing available and stressed a strong encouragement and warning signal.
IMF forecasts last month that global economy would grow 3.9 percent this year and at the same pace in 2019, which she said was a good backdrop for needed reforms
Global stock markets were hit by wild fluctuations, with the U.S. benchmark S&P 500 tumbling 5.2 percent last week, its biggest weekly percentage drop since January 2016. The volatility was fuelled by investor worries about rising interest rates and potential inflation.