Lagarde: 'Reason to Be Concerned' About Global Economy
Lagarde: 'Reason to Be Concerned' About Global Economy
The IMF’s Christine Lagarde expressed concerns on the global economy due to China’s slowdown and the prospects of higher interest rates in the U.S. at a COA event.
Washington, Sep 30 (AFP) The IMF voiced concern todayabout the global economy, weakened by China's slowdown andfacing a potential "vicious cycle" from a looming US interestrate hike.
"On the economic front, there is ... reason to beconcerned. The prospect of rising interest rates in the UnitedStates and China's slowdown are contributing to uncertaintyand higher market volatility," IMF managing director ChristineLagarde said in a speech in Washington, according to theprepared text.
Lagarde also pointed to the "sharp deceleration" in thegrowth of global trade and the "rapid drop" in commodityprices, which is hammering the finances of commodity-exportingemerging market economies.
Many of the recent economic gains in Asia, Latin Americaand Asia "now seem in jeopardy," said Lagarde, addressing theCouncil of the Americas ahead of next week's IMF and WorldBank annual meetings to be held in Lima, Peru....
