IMF director Christine Lagarde says Brexit is one of two big concerns for the world economy

 
James Nickerson
Follow James
SWITZERLAND-DAVOS-ECONOMY-POLITICS-MEET-WEF
The refugee crisis and Brexit were flagged by Lagarde as concerns for the World economy (Source: Getty)

The International Monetary Fund's director Christine Lagarde has warned that while the world economy is in better shape than a year ago, Brexit is one of the IMF's two big concerns.

Speaking on a panel at Davos, Lagarde said the possibility that the United Kingdom votes to leave the European Union is a concern for the world economy.

Read more: Lagarde confirms plans to run for a second term

"We hope very much [there is a deal], as it would really be conducive to more stability and a more cohesive economic zone," she said.

The former French finance minister also flagged the refugee crisis as a cause for concern, branding it a "make or break" issue for Europe.

Read more: The IMF cuts its global growth outlook again

If the situation and integration process is handled well it could be of economic benefit for the Eurozone, and even serve to boost growth in European nations, Lagarde said.

However, Lagarde also pointed out four more downside risks for the world economy, including China's export rebalancing, commodity prices, emerging markets and the issues posed by asynchronous monetary policy around the world.

Related articles