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Lagarde predicts economic growth, but warns of potential risks

Wednesday, January 15, 2014 - 01:24

Jan. 15 - Christine Lagarde, managing director of the IMF, predicts higher global growth but warns officials to beware of deflation ''ogre.'' Rough Cut (no reporter narration).

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ROUGH CUT (NO REPORTER NARRATION) The International Monetary Fund expects global growth to pick up this year, though it should still remain below its potential of about 4 percent, the head of the Fund said on Wednesday (January 15). IMF Managing Director Christine Lagarde also warned about the "rising risks" of deflation, as price growth remains below the target of many central banks. "We see rising risks of deflation, which could prove disastrous for the recovery," Lagarde said at the National Press Club in Washington. "Deflation is the ogre that must be fought decisively," she said. Lagarde added that economic growth is still in "low gear" and that if economies were operating at full potential, more jobs could be created globally "without having to worry about the inflation genie coming out of the bottle." Lagarde made her remarks ahead of the IMF's scheduled release of the global growth forecasts due out next week.

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Lagarde predicts economic growth, but warns of potential risks

Wednesday, January 15, 2014 - 01:24