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IMF sees crisis boosting emerging economies role

IMF Managing Director Christine Lagarde.

Major emerging economic powers are "worlds apart" from euro zone countries, International Monetary Fund (IMF) Managing Director Christine Lagarde said while praising Brazil's economic management for leaving the country better prepared than many to weather contagion.

"The crisis has boosted the role of emerging economies on the world stage, but could also prompt some to take protectionist measures," Lagarde said.

Brazil's President Dilma Rousseff unveiled a flurry of measures on Thursday to boost consumption and lending in Latin America's biggest country as the economy slows sharply from red-hot growth of 7.5 percent last year.

Brazil and other emerging countries have said they are willing to boost the IMF's war chest to help solve a crisis in Europe that is threatening their own growth.

However, the amount of resources available to help debt-laden European countries remains a question mark.

Major emerging-market countries could decide on the amount of additional financing to the IMF before a Group of 20 meeting in February, Brazilian officials have said.

 

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Tags:  debt  crisis  IMF  lagarde  


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