IMF’s Lagarde Warns Global 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.

“It’s a relatively young market, and there is an element of a learning curve,” she said of China’s equities. “No one should be surprised by the fact that they want to maintain an orderly movement and try to avoid disorderly function of those markets.”

via Yahoo

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza