Global Recovery is Frail -IMF Chief

In the face of growing risks from a slowdown in China and subdued growth in developing economies, Global economic recovery is still too frail, International Monetary Fund Chief Christine Lagarde said on Tuesday.

“The good news is that the recovery continues; we have growth; we are not in crisis,” Lagarde said in a speech in Frankfurt. “The not-so-good news is that the recovery remains too slow, too fragile, and risks to its durability are increasing,” she warned.

“There has been a loss of growth momentum,” Lagarde said. “Overall, the global outlook has weakened further over the last six months – exacerbated by China’s relative slowdown, lower commodity prices, and the prospect of financial tightening for many countries,” she continued.

In the current situation, the IMF was “on alert, not alarm,” Lagarde said, urging major powers to accelerate structural reform, maintain accommodative monetary policies and invest in infrastructure. She urged “decisive action” ahead of a meeting of leading advanced and emerging economies in Washington on Apr 14 and 15.

The IMF has already hinted it will cut its current 2016 global growth forecast of 3.4 per cent next week when it publishes fresh forecasts at its traditional spring meeting with the World Bank in Washington.