World Economic Forum resonates with calls for eco reforms, tapering concerns

Written by PTI | Davos | Updated: Jan 26 2014, 04:02am hrs
WEFOn India, discussions were about outcome of upcoming general elections, ensuing AAP's political developments. Reuters
The overwhelming need for structural reforms to sustain economic growth resonated at the WEF even as global leaders cautioned that monetary stimulus tapering and deflation could hurt the fragile recovery.

On India, discussions mainly veered around the country's reform agenda, outcome of upcoming general elections and ensuing political developments with the advent of the Aam Aadmi Party (AAP).

As the 44th World Economic Forum (WEF) annual meet, with participation of over 2,500 delegates, draws to a close today, a sense of cautious optimism prevailed at this skiing resort town especially since there were no impending dark clouds over the global economic horizon.

Apart from economics, Middle East crisis, climate change and unemployment grabbed the attention while the forum also saw the presence of Iranian President Hassan Rouhani and Israeli President Shimon Peres.

Setting the tone for a long term agenda to ensure sustainable and healthy global growth, IMF Chief Christine Lagarde said emerging as well as developed nations should pursue structural reforms.

As the global economy limps back to normalcy, the debate over tapering of monetary stimuli was re-ignited at the WEF.

Meanwhile, Indian ministers at the annual meet assured global investors about the country's growth story and asserted the economy would expand at a faster clip in the coming years.

Notwithstanding economic woes back home, Indian business leaders gathered at the WEF generally struck a note of cautious optimism even as they await outcome of general polls.

About Europe too, which is witnessing uneven recovery, the larger message was that countries in the region cannot afford to relax the process of implementing reforms.