- US growth in 2013 will be too low below 2% due to too much fiscal tightening
- Eurozone growth should be positive again in 2014, almost 1%
- Japan’s aggressive monetary stimulus seems to be working and boosting GDP by around 1%
- Progress on financial reform too slow and partly due to delays and divergence across countries, shadow banking is one danger zone
- Market turbulence since May over perceived end to US easy money policies could reduce GDP in major emerging markets by 0.5-1%
Lagarde was speaking on the global economy in Washington via Reuters