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IMF's Lagarde sees improved world economic outlook


March 17. 2013 2:58AM
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(AP) International Monetary Fund chief Christine Lagarde says the threat of financial collapse in the global economy appears to have eased. But she is warning that developed economies still need to follow through on financial reforms and debt reduction.


In a news conference Thursday on her outlook for 2013 she said: We stopped the collapse. We should avoid the relapse. And it's not time to relax.


Lagarde said that big economic powers, including the United States and European countries, had taken important steps to shore up their financial systems, but they have a lot of work left to do. She warned that there are signs of a waning commitment to regulate the financial sector despite the severe problems that began with the collapse of U.S. financial institutions in 2008.


Associated Press


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