Lagarde offers stern talk as IMF prepares to revise downward growth expectations
Christine Lagarde soon may be regretting her assumption of the role of International Montary Fund chief. The IMF issued a 4 percent downward revision of its June global growth forecast and is now preparing to further revise downward those forecasts. Meanwhile, Lagarde warned, the global economy is standing a a “very dangerous juncture.”
Speaking in Africa, Lagarde pointed to “downside risks on the horizon” which threaten the recovery that began in 2008-9.
“A collective crisis of confidence is at the heart of the problem. Adverse developments in the real economy and the financial sector keep feeding off each other, propelling each other down. And, as we have seen in Europe, there has been a loss of market confidence in both governments and banks,” said Lagarde in a speech about Africa’s response to the global crisis.