7th July 2014
International Monetary Fund (IMF) chief Christine Lagarde has suggested that the pick-up in global economic activity may not be as strong as many believe it is.
Lagarde said central banks’ attempts to stimulate growth may be “finding their limit”.
This month the organisation will publish its latest set of global growth forecasts.
The previous set, published in April, estimated that global economic growth would expand by 3.6% this year and 3.9% in 2015.
The IMF’s latest set of predictions will be “very slightly different” from those released in April, Ms Lagarde told an economic conference, in the south of France on Sunday, spurring on expectations that the fund is gearing up to cut its forecasts according to a report in The Telegraph.
In her speech Lagarde asserted that global activity will gain momentum in the second half of the year following a disappointing start and will accelerate further in 2015. However, that momentum may be weaker than expected “as potential growth is lower and investment remains depressed” noted the report.
“Despite the many responses to the crisis…recovery is modest, laborious, fragile, and measures to boost demand, despite the goodwill of central banks, will find their limits,” Ms Lagarde said.