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IMF sees global growth, deflation risks rising

Published on Jan 16, 2014 6:18 AM
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International Monetary Fund(IMF) Managing Director Christine Lagarde delivers remarks on the world's economy at the National Press Club on Jan 15, 2013, in Washington, DC. Ms Lagarde said on Wednesday that growth in the global economy was picking up, but warned of the "rising risks" of deflation. -- PHOTO: AFP

WASHINGTON (AFP) - lnternational Monetary Fund (IMF) chief Christine Lagarde said on Wednesday that growth in the global economy was picking up, but warned of the "rising risks" of deflation.

"Momentum strengthened in the latter half of 2013, and should strengthen further in 2014 - largely due to improvements in the advanced economies," Ms Lagarde said in a speech at the National Press Club in Washington.

The IMF managing director, however, declined to put numbers on the growth rate ahead of next week's update of the Fund's official forecasts.

But she pointed out that global growth, five years after the financial crisis, remains below its potential of about four percent a year, resulting in a tame risk of inflation worldwide.

 
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