Despite signs that US growth is building a head of steam the IMF has hinted of a potential downgrade of global growth forecasts

Despite signs that US growth is building a head of steam the IMF has hinted of a potential downgrade of global growth forecasts. Comments from Christine Lagarde, the MD of the IMF, highlight a number of risks still facing the global recovery including within the US and that spending remains lacklustre. The global economy is gathering speed, though the pace may be a bit less than we previously predicted because the growth potential is lower and investment. Lagarde also highlighted the tricky situation faced by the eurozone which is attempting to fight deflation through increased public investment plans. We see an investment deficit everywhere, Lagarde said. Yet public policy must be dictated by debt sustainability. If you're not in a medium-term situation that assures sustainability, you can't undertake major infrastructure investments. The IMF will meet later this month to update their global growth forecasts. Read the full story (VIEW LINK)


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