The global economy could be stuck in a weak growth rut for a long time as countries struggle to pull free from a past of high debt and unemployment, the head of the International Monetary Fund said on Thursday.
The economic rebound is even weaker than the IMF predicted six months ago, and countries risk getting stuck in a prolonged period of sluggish growth, especially in the euro zone, Christine Lagarde, the IMF’s managing director, said.
“Yes, there is a recovery but as we all know – and can all feel it – the level of growth and jobs is simply not good enough,” Lagarde said in remarks at Georgetown University in Washington. “The world needs to aim higher and try harder.”
Lagarde said the IMF pared its expectations for potential growth, or the change in the global economy’s ability to produce.