World Economy

Lagarde: Global economy weaker than envisioned 6 months ago, IMF to cut growth outlook with Reuters
International Monetary Fund (IMF) Managing Director Christine Lagarde speaks at Georgetown University in Washington, on October 2, 2014.
Nicholas Kamm | AFP | Getty Images

The economic rebound is weaker than the International Monetary Fund envisioned six months ago and the global economy could be stuck in a sluggish growth rut for a long time, IMF Managing Director Christine Lagarde said Thursday.

Lagarde, in remarks prepared for delivery at an event in Washington, said the IMF would reduce its outlook for potential growth. She added that only a modest pickup in global growth is expected in 2015.

Read MoreFed making major shift on rate policy

IMF's Lagarde: Global economy weaker
IMF's Lagarde: Global economy weaker

"Yes, there is a recovery but as we all know—and can all feel it—the level of growth and jobs is simply not good enough,'' Lagarde said, according to prepared remarks at Georgetown University in Washington. "There are some serious clouds on (the) horizon."

Read MoreWhich global market is your match?

Lagarde, a former French finance minister, warned it was possible that financial excesses were starting to build up in the system. She also cited the economic risks of the situations in Ukraine, the Middle East and West Africa.

--Reuters contributed to this report.