Christine Lagarde the International Monetary Fund (IMF) Managing Director said that the IMF would be lowering its global growth projection of 3.5 per cent. Lagarde said: “The global growth outlook will be somewhat less than we anticipated just three months ago,”. “Many indicators of economic activity – investment, employment, and manufacturing – have deteriorated. And not just in Europe or the United States.”
Brazil, China, Russia, and India are also witnessing slower economic growth. The IMF will issue a revised outlook by July 16. In January the IMF revised the growth rate upwards from 3.3. per cent to 3.5 per cent and from 3.9 to 4.1 for 2013.
Shortly before Lagarde's announcement the ECB and Chinese Central Bank lowered interest rates to stimulate the economy. Lagarde also said that there should be a fiscal union in Europe. She said. “.. they’re heading in a new direction together and that’s a clear sign that things are changing.” The EU leaders agreed that there could be direct lending to banks rather than going through the governments of each country. For more see this article.