IMF: China worries have increased risks for global economy

Risks for the global economy have increased in recent months, particularly because of the slowdown in China and anticipation of monetary tightening in the U.S. and Britain, IMF Managing Director Christine Lagarde said here Tuesday.

“The downside risks are greater than they were,” the head of the International Monetary Fund said during an event at the Brookings Institution.

China experienced episodes of financial volatility last month and Beijing implemented a surprise devaluation of the yuan, while the expected interest rate increases in the U.S. and Britain are likely to cause turbulence, Lagarde said.

The IMF chief said another worry for the Washingtonbased institution is growing income inequality, emphasizing that less inequality would be “much better” for economic growth.

The IMF will release its latest economic forecast during the Fund’s Oct. 611 annual meeting in the Peruvian capital.

In July, the IMF predicted a 3.3 percent global economic expansion this year and 3.8 percent growth in 2016.