IMF Warns Spending Cuts Will Stall Global Recovery

Christine Lagarde

IMF chief Christine Lagarde has warned that spending cuts may stall the world economy.

Lagarde said in an opinion piece in the "Financial Times" newspaper that "slamming on the brakes too quickly will hurt the recovery and worsen job prospects."

Lagarde's comments came as pressure was rising on advanced countries like the United States and Europe's largest economies to trim their debt burdens, and also as worries rose over slowing growth around the world.

The IMF has encouraged the highly indebted, advanced economies to take a long-term view of deficit reduction and to implement both spending cuts and tax increases.

compiled from agency reports