Business
              Managing Director of the International Monetary Fund Christine Lagarde speaks with the media as she arrives for an EU summit in Brussels on Thursday, Dec. 8, 2011. During a two-day summit German Chancellor Angela Merkel and French President Nicolas Sarkozy will try to build support for their plan for eurozone nations to submit their national budgets to much greater scrutiny. (AP Photo/Geert Vanden Wijngaert)
              Managing Director of the International Monetary Fund Christine Lagarde speaks with the media as she arrives for an EU summit in Brussels on Thursday, Dec. 8, 2011. During a two-day summit German Chancellor Angela Merkel and French President Nicolas Sarkozy will try to build support for their plan for eurozone nations to submit their national budgets to much greater scrutiny. (AP Photo/Geert Vanden Wijngaert)   

IMF warns that world risks sliding into a 1930s-style slump

Photo of Kells Hetherington
Kells Hetherington
Contributor

The world risks sliding into a 1930s-style slump unless countries settle their differences and work together to tackle Europe’s deepening debt crisis, the head of the International Monetary Fund has warned.

On a day that saw an escalation in the tit-for-tat trade battle betweenChina and the United States and a deepening of the diplomatic rift between Britain and France, Christine Lagarde issued her strongest warning yet about the health of the global economy and said if the international community failed to co-operate the risk was of “retraction, rising protectionism,isolation”.

She added: “This is exactly the description of what happened in the 1930s, and what followed is not something we are looking forward to.”

Full story: IMF warns that world risks sliding into a 1930s-style slump | Business | The Guardian.