The International Monetary Fund’s (IMF) managing director, Christine Lagarde, warned that the outlook for world economic growth has deteriorated as both developed and major emerging nations show signs of slowdown. Her comments come a day after the European Central Bank (ECB), the Bank of England (BoE) and China’s central bank each announced an easing of monetary policy.
In a speech given at an economic symposium in Tokyo, Lagarde said: “In the last few months, the global outlook has been more worrying for Europe, the US and large emerging markets,” adding that the IMF, which will publish an update to its World Economic Outlook report on 16 July, was likely to lower many of its previous growth forecasts.
In April the IMF predicted world economic growth this year would average 3.5%. Lagarde said that the revised figure would not be an “enormous variation”, but would be a reduction.
Lagarde welcomed recent co-operation by eurozone leaders to address the sovereign debt crisis, but said that further fiscal cooperation would be needed to complete necessary reforms. “It’s also a question of implementation -diligent, rigorous, steady implementation,” she added. The announcement by the ECB on 5 July that its refinancing rate was being reduced to a historic low of 0.75% had been a further positive move.
AT&T, the giant US telco, which has announced its intention to buy entertainment group Time Warner for nearly $85bn (£70bn) is facing ... read more
The country is expected to survive the review, which it must do to retain its place in the European Central Bank’s asset purchase programme.
The bank believes that the battered UK currency, recently only just holding above the US$1.20 level, could be trading at US$1.36 by this time next year.
The Middle East oil producer’s debut global bond issue surpassed the total of US$16.5bn raised by Argentina when it tapped the market earlier this year.