IMF’s Lagarde: Global Downside Risks ‘on the horizon’

Global risks are on the horizon, International Monetary Fund Managing Director Christine Lagarde said in a Wednesday news conference.

“If I look at the global economy as it stands at the moment…we have a situation where growth is a little bit tepid,” she said. “We have recovery, but it’s fragile, it’s unbalanced, and there are some downside risks on the horizon.”  Lagarde highlighted some positive growth in low-income countries, but she also noted a slowdown in growth for countries like China.

Asia’s largest economy, she said, has seen “a lot of noise” regarding its stock market volatility, but she said China is “resilient” and strong enough to withstand those swings. Lagarde also said that the equities variations would not affect the IMF’s assessment of whether to include the yuan in its special drawing rights (SDR) basket.