The IMF is calling on developed economies to invest in structural reforms in the labour market in its updated report in the World Economic Outlook. The Fund argues that under the current circumstances, where developed economies are faced with low economic activity it is necessary to implement structural reforms in labour markets coupled with wise fiscal policies to aid growth. The report outlines that alternative interventions in the labour market, like cuts in wage deductions i.e raising net earnings could be more effective regardless of economic growth. The reason is it contributes to a virtuous economic cycle of increased consumption and improved economic environment, as well as more investments. The Fund believes the key to economic recovery is an increase in public investments.