Global productivity slowdown risks creating instability, warns IMF

Christine Lagarde says governments must invest in education, cut red tape and encourage innovation to drive up growth

The head of the International Monetary Fund has issued a stark warning that living standards will fall around the world unless governments take urgent action to increase productivity by investing in education, cutting red tape and incentivising research and development.

Christine Lagarde used a speech in Washington to tell policymakers they could not simply wait for innovation to drive up productivity growth and help living standards recover from the legacy of the global financial crisis.

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