IMF sees risks to weak global recovery increasing

WASHINGTON: The global recovery is facing growing risks, and frustration with inequality is increasing the lure of protectionism, International Monetary Fund (IMF) managing director Christine Lagarde said.

The world economy’s outlook has dimmed over the last six months, exacerbated by China’s slowdown, lower commodity prices and the risk of financial tightening in many countries, Lagarde said yesterday in the prepared text of a speech in Frankfurt. The expected passing of the “growth baton” from emerging markets to advanced economies hasn’t occurred, she added.