The global economy is doomed to low growth, says IMF chief

The main risks for the global economy over the next few years - low economic growth, high unemployment, and geopolitical problems, said the head of the international monetary Fund (IMF) Christine Lagarde, speaking on Thursday in front of students at Georgetown University.

on the eve of the annual forum of the IMF, which will begin next week, Lagarde met with students in the U.S. capital. The subject of the report was devoted to the challenges and risks facing the global economy.

His speech Lagarde start with the fact that the economy has entered a stage of its development, when its low growth will last for a long time. This period will be accompanied by low inflation and high unemployment." Low inflation and high unemployment, This is what we are currently seeing in the Eurozone. In parts of the country more than in the other, " he led by example Lagarde.


The head of the IMF said that the Fund is concerned about a growing trend in the flow of liquidity from the banking sector in the " shadow ", in the unregulated zone.

" To my regret, there is a risk of migration of liquidity outside of the financial markets in the " shadow markets ", in an unregulated environment. These trends are growing rapidly in parts of the country. In the USA the informal sector more than the banking sector in the European Union, the informal sector is presumably half of the banking sector, and in China it is about 25-50% of GDP, ranked fifth in the world, " said Lagarde.

However, the head of the Fund said that in the cases of " shadow banking " need, " but the problem is that there is not enough information about shadow banking." It requires special attention and may be of a special type of regulation, " said she.


according to the comments of the head of the IMF, after falling in 2008, adopted conclusions on reforming the global financial system. A lot has been done, However the main result has not yet been reached.

" Have you heard much about the reform of the financial system in the last six years. Just because it was discussed at the G20 in the capital of the United States and London. I was there, I remember


sections: Politics