She believes that the fast-moving wheels of the developing economies may not offset the slow-moving one of the developed world.
She told Journal du Dimanche that the financial crisis is spreading into “a crisis of confidence in public debt and the financial system. The main player, America, is affected. And emerging countries, today’s engines of recent expansion may suffer.”
Lagarde mentioned China, Brazil and Russia, “where growth forecasts are revised downwards. These countries, which were locomotives, these factors are subject to instability.” In late January, the IMF will deliver its world economic forecasts. It was counting on an increase of up to 4%. Lagarde warned that this figure will be revised downward.
Douglas A. McIntyre