International Monetary Fund (IMF) chief Christine Lagarde issued a round of warnings Tuesday, December 20th, regarding the state of the world economy.
“Currently the world economy stands at a very dangerous juncture,” Lagarde told a roundtable on Africa’s economic future in Lagos, Nigeria. “And what’s more, there are downside risks on the horizon that are really threatening the recovery process that had started after the 2008-2009 global financial crisis”.
Lagarde also said on Monday during meetings with Nigerian officials that the European debt crisis poses a risk for “all economies of the world”.
When discussing the current problems we are seeing with the largest of the global economies, Lagarde told the audience, “Those problems seem a world away, but they are not a world away because what we see very clearly are channels of contagion between those advanced economies and the rest of the world.”
Early in December, the United Nations officially cut its 2012 world growth forecast from 3.6 percent to 2.6 percent, warning that the global economy is “teetering on the brink of a major downturn”.
Lagarde did not comment directly on the new pledges of funds from European nations for the IMF, nor did she respond to a question on Britain’s stance on the issue.