IMF's Lagarde says global recovery fraught with risk

ANKARA

Global economic recovery remains “fragile” and fraught with risks, International Monetary Fund (IMF) chief Christine Lagarde said on Wednesday.

In a televised press conference from Washington, Lagarde said that global growth "is a little bit tepid."

She added: "We have recovery but it's fragile, it's unbalanced and there are some downside risks on the horizon.

"I'm sure that there will be changes in the euro area which will be probably triggered by the current questions that one has about the cohesion of the monetary union."

Greece remains a major issue in the eurozone issue, Lagarde said, but progress was being made.

Debt restructuring was a “significant need” for Greece and solid implementation of structural reforms and credible financing would help the Greek economy "finance itself in the future".

Lagarde told journalists that the slowdown in China was "controlled". She praised Chinese regulators for their management of the economy and the country’s recent stock market crash.

In Japan, she said the economy was seeing improvement thanks to the government’s economic stimulus program.  “Abenomics is beginning to deliver,” Lagarde said, referring to Prime Minister Shinzo Abe's economic policies.