Arab Today, arab today international monetary fundchief sees tepid growth for world economy
Last Updated : GMT 08:42:31
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Arab Today, arab today

International Monetary Fund chief sees "tepid" growth for world economy

Arab Today, arab today

Arab Today, arab today International Monetary Fund  chief sees "tepid" growth for world economy

Christine Lagarde
Washington - Petra

The world economy is going through a "tepid" recovery, International Monetary Fund chief Christine Lagarde said on Tuesday, adding that growth in advanced economies should be higher.

Speaking at a women's forum in Dubai, the newly reelected Lagarde said global economic growth stood at 3.1 per cent last year, and is expected to grow by "a bit more than three per cent" this year, and a "little higher" in 2017.

"It is a growth but it is a tepid growth because the recovery that we see in the United States, Europe and a little bit in Japan as well could be bigger," she said.

"If you compare current growth to the potential output the economy should deliver, it is less," she added.

As for emerging economies, apart from India which is "doing pretty well," they are slowing down, said Lagarde.

Other emerging economies are either "deliberately" slowing down like China, or "in a pretty weak position" like Russia, Brazil or South Africa, she said.

Lagarde said commodity producers, particularly oil exporters, "are facing a completely new reality," noting that world prices, not only of oil but also of metals and food, "have gone down significantly to actually change the business models of those countries, which some of them are addressing well.

 

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