‘World economy still not out of the danger zone’ – Lagarde

Derailment of the global recovery, which was a clear and distinct danger a few months ago, has been avoided for now thanks to strong policy measures - in particular those of the European Central Bank - and strengthened governance in the euro area as well as reforms and adjustment in countries such as Italy, Spain, and Greece, managing director of the International Monetary Fund Christine Lagarde said this week.
“But,” she warned delegates at the G-20 ministerial meeting in Mexico City, “the world economy is still not out of the danger zone, and the G-20 countries must now strengthen resilience to further shocks that could result from still fragile financial systems, high public and private debt, and higher world oil prices. Of equal concern is unemployment, which is still too high in many countries.”