Global economy condemned to 'moderate' growth: IMF's Lagarde

Tokyo

A WEAKER-than-expected recovery in advanced economies, allied with a further slowdown in emerging economies, will condemn the world to "moderate" growth for the foreseeable future, International Monetary Fund (IMF) managing director Christine Lagarde warned on Tuesday.

Speaking at Universitas Indonesia in Jakarta, Ms Lagarde said that global growth is likely to be "weaker than we anticipated last July".

"Asia as a region is still expected to lead global growth," she noted. "But even here, the pace is turning out slower than expected - with the risk that it may slow even further given the recent spike in global risk aversion and financial market volatility."

Ms Lagarde spoke as official data released on Tuesday revealed further evidence of weakening economic activity in China and in Japan, and a day after growth in India was shown to have slackened during …