Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Paul Kagame visits UNESCO HQ in Paris

Read more

MEDIAWATCH

Flamboyant US Congressman's Instagram Lands Him in Bother

Read more

THE WORLD THIS WEEK

Compromise buys Greece time and Jihadi John is unmasked (part 2)

Read more

THE WORLD THIS WEEK

Compromise buys Greece time and Jihadi John is unmasked (part 1)

Read more

#TECH 24

Drone vs. drone

Read more

FRANCE IN FOCUS

The future of agriculture

Read more

REVISITED

Yalta, the symbol of a new Cold War?

Read more

#THE 51%

Women in the workforce: IMF says closing the gender gap makes economic sense

Read more

ENCORE!

Taryn Simon, the hottest property in art photography

Read more

Business

IMF’s Lagarde warns of decade lost to financial crisis

Text by News Wires

Latest update : 2011-11-09

International Monetary Fund chief Christine Lagarde said Wednesday that the world risks plunging into a "downward spiral" of financial instability, urging Asian economies to be on their guard.

AP – The head of the International Monetary Fund warned Wednesday the global economy faces the risk of a ``lost decade'' of little or no growth and Asia should be on guard to deal with a downturn.

Without bold, coordinated action, the world might face worsening financial instability and a possible collapse of demand, said Christine Lagarde, on her first visit to Beijing since becoming IMF managing director in July.

"Ultimately, we could run the risk of what some commentators are already calling a lost decade,'' she told reporters.

Asian economies are relatively strong but need to be ``prepared for any storm,'' said the former French finance minister. She said Asian governments that have tightened monetary policy to fight inflation should ``pause a little bit.''

"Asia is not immune. Let's make no mistake,'' Lagarde said.

Last month, the Washington-based IMF trimmed its forecast for Asia's growth this year to an average of 6.3 percent from its previous outlook of 7 percent, citing Europe's debt crisis and a possible U.S. slowdown.

After a strong start to the year, Asian growth slowed because of sluggish demand from advanced economies and Japan's March tsunami, which disrupted industrial production and exports across the region.

 

Date created : 2011-11-09

  • FRANCE - ECONOMY

    How France plans to save €65 billion in four years

    Read more

  • G20 CANNES SUMMIT

    G20 leaders urge Europe to settle its own problems

    Read more

  • FINANCIAL CRISIS

    Asian markets tumble amid recession fears

    Read more

COMMENT(S)