19 Mar 2012

IMF cautiously upbeat

5:47 pm on 19 March 2012

In a cautiously upbeat assessment of the global economy, the International Monetary Fund chief, Christine Lagarde, says measures to fight financial woes in Europe and the United States are starting to pay off.

In a speech made during a two-day visit to China, Ms Lagarde also warned that major vulnerabilities remain.

Europe, China's top export market, has been hit by a severe debt crisis that has seen a wave of credit rating downgrades and brought Greece to the brink of bankruptcy, sparking concern across the world.

But Ms Lagarde says some of the policy actions taken, particularly by the European Central Bank and some European countries, had helped stabilise the overall situation.