Lagarde: Global downturn ‘is damaging emerging economies’

<p>The global economic downturn is damaging emerging markets, says Christine Lagarde.</p>

Head of the International Monetary Fund (IMF) Christine Lagarde has warned that the global downturn is damaging emerging economies, with the uncertainty surrounding the crisis hampering government plans to boost growth.

Earlier this week, the IMF warned that the worldwide recovery was weakening, while it also slashed its international growth forecast as the crisis rumbles on.

Debt problems in the eurozone and US have damaged demand for exports from Asia, with China's foreign market-dependent economy struggling as its major trading partners lower their orders.

Speaking in Tokyo at the IMF's joint annual meeting with the World Bank, Ms Lagarde acknowledged the measures taken by European decision-makers to allay fears that the situation is getting worse, but admitted a speedy recovery is not on the cards.

At 11:55 BST, the German Dax was higher by 0.8 per cent to an index value of 7265.7 points and the Cac 40 in France advanced 0.6 per cent to 3389.1 points.

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