Latest topics
IMF chief warns world economy risks "lost decade"
Page 1 of 1
IMF chief warns world economy risks "lost decade"
BEIJING (Reuters) - The head of the International Monetary Fund warned on Wednesday that Europe's debt crisis risked plunging the global economy into a "lost decade" and said it was up to rich nations to shoulder the burden of restoring growth and confidence.
Christine Lagarde told a financial forum in Beijing that European plans to bolster a rescue package for Greece were a "step in the right direction," but that the outlook for the world economy remained dangerous and uncertain.
"There are clearly clouds on the horizon," Lagarde said. "Clouds on the horizon particularly in the advanced economies and particularly so in the European Union and the United States."
"Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand... we could run the risk of what some commentators are already calling the lost decade."
The former French finance minister was speaking at the start of a two-day visit in China. Her meetings are expected to focus on efforts to contain the crisis in Europe, which has seen forced resignations of the prime ministers of Greece and Italy in the past week.
Before arriving in Beijing she had spent two days in Moscow, trying to convince Russia to chip in some of its petro dollars to boost bailout funds for the euro zone.
European policymakers are hopeful that big emerging economies, led by China, will invest some of their vast foreign exchange reserves in an expanded bailout fund designed to stop the debt crisis that has engulfed Greece and dragged down bigger economies such as Italy.
But the so-called BRIC nations, comprising of Brazil, Russia, India and China, have so far been reluctant to invest directly in Europe's rescue vehicle, preferring to contribute via the IMF.
Lagarde, speaking at an event organized by the Institute for International Finance -- the global association of the world's most important banks -- also said that China needed to shift its growth model from being export-led to a more balanced one and that the country also needed a stronger currency.
(Writing by Alex Richardson; Editing by Kavita Chandran)
Source: Reuters US Online Report Top News
Christine Lagarde told a financial forum in Beijing that European plans to bolster a rescue package for Greece were a "step in the right direction," but that the outlook for the world economy remained dangerous and uncertain.
"There are clearly clouds on the horizon," Lagarde said. "Clouds on the horizon particularly in the advanced economies and particularly so in the European Union and the United States."
"Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand... we could run the risk of what some commentators are already calling the lost decade."
The former French finance minister was speaking at the start of a two-day visit in China. Her meetings are expected to focus on efforts to contain the crisis in Europe, which has seen forced resignations of the prime ministers of Greece and Italy in the past week.
Before arriving in Beijing she had spent two days in Moscow, trying to convince Russia to chip in some of its petro dollars to boost bailout funds for the euro zone.
European policymakers are hopeful that big emerging economies, led by China, will invest some of their vast foreign exchange reserves in an expanded bailout fund designed to stop the debt crisis that has engulfed Greece and dragged down bigger economies such as Italy.
But the so-called BRIC nations, comprising of Brazil, Russia, India and China, have so far been reluctant to invest directly in Europe's rescue vehicle, preferring to contribute via the IMF.
Lagarde, speaking at an event organized by the Institute for International Finance -- the global association of the world's most important banks -- also said that China needed to shift its growth model from being export-led to a more balanced one and that the country also needed a stronger currency.
(Writing by Alex Richardson; Editing by Kavita Chandran)
Source: Reuters US Online Report Top News
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
Wed Mar 27, 2024 6:02 am by Ditartyn
» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
Sat Mar 23, 2024 9:25 am by swizzlestick
» ZIGPLACE
Wed Mar 20, 2024 6:29 am by Zig
» CBD Vape Cartridges
Thu Mar 07, 2024 2:10 pm by Arendac
» Classic Tony is back
Tue Mar 05, 2024 2:53 pm by Mission1st
» THE MUSINGS OF A MADMAN
Mon Mar 04, 2024 11:40 am by Arendac
» Minister of Transport: We do not have authority over any airport in Iraq
Mon Mar 04, 2024 11:40 am by Verina
» Did Okie Die?
Mon Mar 04, 2024 11:34 am by Arendac
» Hello all, I’m new
Wed Jan 31, 2024 8:46 pm by Jonny_5
» The Renfrows: Prophets for Profits, Happy Anniversary!
Wed Jan 31, 2024 6:46 pm by Mission1st
» What Happens when Cancer is treated with Cannabis? VIDEO
Wed Jan 31, 2024 8:58 am by MadisonParrish
» An Awesome talk between Tucker and Russell Brand
Wed Jan 31, 2024 12:16 am by kenlej
» Trafficking in children
Mon Jan 29, 2024 7:43 pm by kenlej
» The second American Revolution has begun, God Bless Texas
Mon Jan 29, 2024 6:13 pm by kenlej
» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
Sun Jan 28, 2024 3:28 pm by Mission1st
» Tucker talking Canada
Wed Jan 24, 2024 6:50 pm by kenlej
» Almost to the end The goodguys are winning
Mon Jan 22, 2024 9:03 pm by kenlej
» Dinar Daily Facebook Page
Mon Jan 22, 2024 3:34 pm by Ponee
» The Fundamentals of Finance and Pimpy Live
Thu Jan 18, 2024 7:17 am by Dinarhater
» Why Won't the Iraqi Dinar Scam Die?
Wed Jan 17, 2024 5:19 pm by RamblerNash