IMF's Blanchard sees no global recession

Olivier Blanchard, the International Monetary Fund’s chief economist, has said that he does not see any global recession, but highlights a number of areas of concern.

Speaking in an interview with Bloomberg, Blanchard covered many of the points from the IMF’s forecast yesterday.

He added that the Federal Reserve “knows what it’s doing”, referring to its potential tapering of quantitative easing that sent the markets into turmoil recently. Blanchard also thinks that US assets are going to be more attractive in the future.

On China, which the IMF noted was slowing along with a number of other emerging market economies, Blanchard says that the country faces a "difficult choice" on its shadow banks, which provides much of the funding needed by small businesses as major banks hold back lending under a tight monetary policy.

He also noted that France is “slowly losing competitiveness”.