Global economic recovery remains fragile: IMF
OREANDA-NEWS. April 11, 2016. The global economic recovery remains fragile amid increasing risks to its durability, IMF managing director Christine Lagarde says. Persistently low growth can be self-reinforcing, and expectations have faded that advanced economies will pick up the "growth baton" from emerging markets, she says.
Emerging and developing countries are susceptible to the effects of low commodity prices and the resulting volatility in capital flows, which could feed back into sovereign balance sheets "through implicit guarantees of large and inefficient state-owned enterprises that take a hit from falling commodity revenues", Lagarde says.
The IMF will release its latest quarterly World Economic Outlook on 12 April. Its January report projected global economic growth of 3.4pc this year, a 0.2 percentage point reduction from its previous report.