Lagarde alarm at worsening outlook
IMF chief Christine Lagarde expressed concern yesterday at a deterioration in the global economy, saying the outlook has become more worrying as developed and big emerging nations show signs of slowing down.
Concerns that the world's biggest economy is losing momentum grew when data out yesterday showed US employers added only 80,000 jobs in June and the jobless rate remained at 8.2pc.
China, the world's second-biggest economy, releases a raft of data next week, including on second-quarter GDP.
"In the last few months, the global outlook has been more worrying for Europe, the US and large emerging markets," Ms Lagarde said in a speech in Tokyo.
The IMF will downgrade some of its economic forecasts later this month as economic data from major and emerging economies has deteriorated in recent months, she said. "The IMF's forecasts are likely to be lower than our previous forecasts."
The IMF will publish an update to its World Economic Outlook report on July 16.
She welcomed growing co-operation in Europe to tackle the sovereign-debt crisis but said that further fiscal joint effort was needed.
In the IMF's April report, it revised upward its global growth forecast for this year to 3.5pc from 3.3pc in January, and to 4.1pc for 2013 from 3.9pc previously.
The IMF managing director acknowledged that the two main concerns for Japan's economy were a further appreciation of the yen and risks posed by Europe's debt crisis to demand for Japanese exports. (Reuters)
The yen is moderately overvalued and there is a risk it could rise further if Europe's debt crisis spurs a flight away from riskier assets, she said. (Reuters)