Christine Lagarde, head of the International Monetary Fund, recently called for additional action as Europe continues to grapple with debt and the U.S. struggles with an impending fiscal crisis. Lagarde claimed that the world economy is faring worse than even the more pessimistic expectations.
Though the European Central Bank and European governments have taken several steps to ensure security, Lagarde stated that “more needs to happen, and faster.”
Just recently the IMF lowered its global growth predictions to 3.3%, down from an already low 3.5%. It has since warned that reality may fall short even of this low forecast if the United States and Europe are unable to improve on the situation.
“We are not expecting a very, very strong recovery. The recovery continues, but it continues more slowly than we had expected earlier this year,” Lagarde said. The slowdown is having a “ripple effect on emerging markets, and in particular in Asia.”
Political tensions have also impacted economies throughout Asia, and Lagarde stressed the importance of a quick resolution for the good of global growth.
“We hope that differences, however longstanding, can be resolved harmoniously and expeditiously so that from an economic point of view cooperation can continue… since we are all very closely interconnected,” she said.