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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.
"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."
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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.