Lagarde: Economy Is In a Dangerous Phase

Christine Lagarde, director of the International Monetary Fund (IMF), said that the economy has entered a dangerous phase as the advanced economies are at risk of falling into a new recession due to the lack of political will to prevent the situation debt to worsen, a second recession would affect developing countries.

Lagarde said that the debt crisis in the eurozone has worsened, the United States is immersed in an internal debate about what direction to take to boost employment and emerging countries, pulling the world economy, suffer from overheating.

She added that the weak growth and massive debts are curbing demand, investment and job creation. She also encouraged international leaders to undertake urgent collective actions to tackle the global financial crisis of 2009 and welcomed the proposals that the president of the United States, Barack Obama, said to stimulate economic growth and employment.

(MS)