IMF fears global crisis re-emerging
TOKYO – The International Monetary Fund head, Christine Lagarde, has warned the global economic crisis has started to hurt growth in emerging economies.
She said that uncertainty surrounding the global economy was hampering policymakers’ ability to take measures to boost growth.
Earlier this week, the IMF warned that the global economic recovery was getting weaker.
The fund has also cut its global growth forecast amid the ongoing crisis.
Separately, the World Bank has cut its forecast for major Asian economies, including China and India, citing global risks.
“Whether you turn to Europe, to the United States of America, to other places as well, there is a level of uncertainty that is hampering decision makers from investing, from creating jobs,” Lagarde said during a press conference in Tokyo.
“We need action to lift the veil of uncertainty.”
One of the key concerns among policy makers across the globe has been the ongoing debt crisis in the eurozone and its impact on global growth.
The crisis has dented consumer confidence in the region and hurt growth in the bloc’s economies. (BBC)