IMF chief Lagarde highlights perils of US fiscal cliff
Christine Lagarde has said the “US fiscal cliff” is one of the greatest threats to the global economy.
Speaking at the Asia-Pacific Economic Co-operation Summit in Vladivostok, Russia, the head of the International Monetary Fund said the US tax increases and spending cuts that come into effect in the new year, were one of the largest risks to the global economy.
She also named the eurozone crisis and medium-term public financing, as the two other greatest risk factors.
Her comments came as jitters grew over China, the global engine of growth, as it said its factories ran last month at their slowest rate for three years. It is the latest sign of a deepening slowdown in the world’s second-largest economy.