This meant, in particular, an equitable sharing of the adjustment burden across society and overcoming powerful vested interests. I am acutely aware of the social hardship in the programme countries. Many citizens have suffered and are still suffering from policy mistakes in the run-up to the crisis and the subsequently unavoidable adjustment process. These are real people losing their jobs.
At the same time, the dollar’s rise is reducing net exports, and perhaps restraining investment in areas sensitive to foreign demand, with greater force than anticipated. Net exports subtracted 1 percentage point from GDP growth in the fourth quarter and a whopping 1.9 percentage points in the first quarter.