25 Sep 2012

IMF warns of weaker global growth

1:22 pm on 25 September 2012

The International Monetary Fund looks likely to cut its forecast for global growth next month when it updates its projections for the world economy.

IMF head Christine Lagarde said in a speech that global growth would "likely be a bit weaker" than anticipated, the BBC reports.

Problems in the euro zone and worries about the US economy continued to weigh on investors' confidence, she said.

She also warned of a slowdown in some of the emerging nations that previously bolstered global economic growth.

In July, the IMF cut its global growth projection for 2013 to 3.9%, but left its 2012 forecast unchanged at 3.5%.

Mrs Lagarde, speaking in Washington on Monday, welcomed recent measures by euro zone governments and the European Central Bank to get a grip on the bloc's problems.