Lagarde Says IMF to Cut Forecast

Even lower growth projection will depend ‘on right policy actions being taken,’ IMF head says.

The International Monetary Fund will reduce its estimate for global growth this year on weakness in investment, jobs and manufacturing in Europe, the U.S., Brazil, India and China, Managing Director Christine Lagarde said.

“The global growth outlook will be somewhat less than we anticipated just three months ago,” Lagarde said in a speech in Tokyo today. “And even that lower projection will depend on the right policy actions being taken.” The new outlook will be announced in 10 days, after an April estimate of 3.5 percent, she said.

Yen Concerns

Japanese Prime Minister Yoshihiko Noda told Lagarde that sustained gains in the yen because of the euro region’s crisis are damaging his country’s economy, according to a statement released by his office today.

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