Let's not forget risks global economy faces as we celebrate growth: Lagarde

IMF chief Christine Lagarde today said at Davos that developing and major economies are doing well but global economy is facing several risks

IMF chief Christine Lagarde today said the global economy is in a sweet spot with all major economies doing well, though risks remain in the form of US tax rate cuts, growing inequality and lack of international cooperation.

"All major developed and developing economies are doing well and let's celebrate that. There may be some policies that may be debated in some parts of the world, but in the end, they seem to have worked for now for growth," Lagarde said.

Speaking at a session on global economic outlook here on the last day of the World Economic Forum (WEF) annual meeting, she said what could go wrong would include the risks that emanate from the US tax rate reforms and excessive inequalities that are growing in many areas.
 

Other risks include lack of global cooperation and the resulting geopolitical fractions, she added.

"The global economy is in a sweet spot with around 120 countries set to see strong growth in 2018. Confidence is due to a cyclical upswing and mostly good monetary and fiscal policies," the IMF managing director said.

The WEF, which began on Monday, has seen several leaders flagging concerns like excessive inequality and the risks facing the globalisation process.