Millennium Post

IMF chief says global economy still fraught with uncertainty

The global economy is still fraught with uncertainty and still far from where it needs to be, Christine Lagarde, managing director of the International Monetary Fund [IMF], said here.

'We continue to project a gradual recovery, but global growth will likely be a bit weaker than we had anticipated even in July, and our forecast has trended downward over the last 12 months,' Lagarde said on Monday at an event hosted by the Peterson Institute for International Economics, a Washington-based think tank. 'A number of factors are weighing the global economy down. At the center of them all is the element of uncertainty; uncertainty about whether policymakers can and will deliver on their promises,' Xinhua quoted her as saying.

The global economic growth was confronted with a number of challenges including the ongoing eurozone debt crisis.    


India seems insulated from the worst of effects of global financial crisis as it has relatively low degree of exposure to international banking, International Monetary Fund [IMF] has said. ‘India and Malaysia appear insulated from foreign banks by almost all indicators when compared with all peer groups, except developing Asia and the economies that make up the BRIC group,’ said the report released on Tuesday in which IMF asked if some banking systems withstand international contagion because they are less globally integrated.

‘Australia, Canada, India, and Malaysia have a relatively low degree of exposure to international banking and also avoided the worst of the effects of the global financial crisis,’ the report said.
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