IMF chief: Global growth weaker than expected

"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 in a speech in Washington.

 

She repeated the IMF's long-standing warning of "the urgent need to initiate, execute, implement the policy actions required to secure the global recovery."   Lagarde said that "uncertainty in the euro zone remains the greatest risk to the global economy today."   She said that the euro zone needs to initiate a strong and effective banking union, establish a single supervisory mechanism and enable the direct recapitalization of banks. Lagarde repeated calls for implementing the firewall of the European permanent bailout fund, the agreed plan for fiscal union and country-by-country reforms to promote growth, jobs and competitiveness.//DPA

 

The Washington-based crisis lender is to issue its regular WorldEconomic Outlook on October 9, ahead of its twice yearly jointmeetings with the World Bank, to be held in Tokyo.dpa fff grjAuthor: Frank Fuhrig241712 GMT Sep 12