Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Christine Lagarde

World

World economy at a ‘very dangerous juncture’: IMF chief

Christine Lagarde

LAGOS, December 20, 2011 (AFP) – The world economy is at a “very dangerous juncture”, IMF chief Christine Lagarde said on Tuesday referring to the potential impact on poorer nations during her first visit to Africa as head of the fund.

“Currently the world economy stands at a very dangerous juncture,” Lagarde told a roundtable on Africa’s economic future in the Nigerian city of Lagos.

The International Monetary Fund managing director spoke of a crisis of confidence with high unemployment and slowing global growth.

She said the IMF’s revised global growth forecast expected in January, looked to be lower than the previous one in September, which was four percent, already down from June’s outlook.

“And what’s more, there are downside risks on the horizon that are really threatening the recovery process that had started” after the 2008-09 financial crisis, she said.

The IMF has said Europe’s worsening economy and financial market turmoil meant it will revise downwards its predictions of the global economic growth contained in its World Economic Outlook report published three months ago.

Early this month the UN also cut its world growth forecast to 2.6 percent in 2012 from four percent in 2010, warning the global economy is “teetering on the brink of a major downturn.”

Lagarde warned on Monday during meetings with Nigerian officials that the European debt crisis posed a risk for “all economies of the world,” and forecasted “stalled growth” in advanced economies.

She spoke on Tuesday as the European Union fell short of a target for loans to the IMF destined for a eurozone bailout.

EU leaders had called for 200 billion euros, but the 17 countries that share the single currency pledged 150 billion euros ($195 billion) in bilateral loans for the Fund late Monday night, after Britain refused to stump up its roughly 30 billion euro share.

Advertisement. Scroll to continue reading.

The EU hopes the money can help stabilise the debt-laden euro area.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...