Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Hollande depicted as Hitler

Read more

EYE ON AFRICA

Boko Haram crisis: Militants forced from north eastern Nigerian town

Read more

REPORTERS

Syria: Wresting control of Kobani from IS group

Read more

FRANCE IN FOCUS

A who's who of the 'Bettencourt trial'

Read more

FOCUS

Golan Heights on edge...

Read more

THE BUSINESS INTERVIEW

Eugene Kaspersky: Cyber attacks on critical infrastructure 'just a question of time'

Read more

#THE 51%

Equality in the workplace: Bridging the gender pay gap

Read more

ENCORE!

The culture stars trying to save the world

Read more

#TECH 24

Technology helping visually impaired people

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)