IMF chief qualifies negative global outlook

The International Monetary Fund chief has said that it will downgrade predictions for global economic growth to lower than 4.0% later this month, due to the effects of a widening Eurozone crisis.

At a news conference in Pretoria, South Africa, Christine Lagarde warned 2012 “will not be a walk in the park, and that it will not be an easy journey.” She said some European countries (may) already be technically in a recession but that does not necessarily apply to the 17-nation eurozone or the European Union as a whole.

She also said that any changes in the Eurozone crisis would effect other countries like South Africa and other African nations.

Lagarde was accompanied by South Africa’s Finance Minister Pravin Gordhan, who said the European situation was creating more and more uncertainty.