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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.