International Monetary Fund chief Christine Lagarde says that a large part of the world economy looks better than it did a year ago, but also warns there are risks remaining from the global recession in some countries.
The Fund managing director told a forum Sunday night in China that growth continues to broaden and strengthen throughout emerging and developing economies, and that the U.S. economy is showing signs of improvement.
She praised Asia’s economic performance, noting that two-thirds of the global growth since the recession started in 2008 has occurred in Asian countries.
But Ms. Lagarde said there is a patchy recovery throughout the world, and that the overall improved economic fortunes do not amount to enough of a real recovery. She said worries about low growth are centered in the 17-nation euro currency bloc in Europe, and that lack of agreement on financial policies in Washington could thwart growth in the American economy, the world’s largest.
Ms. Lagarde said she expects the Asian economy to grow by 6 percent this year, well above the U.S. and European economies. But she said that for future economic success, Asian countries need to increase their spending on the health and training of future workers, increase the employment of women and protect the continent’s environment.