IMF chief Lagarde holds private meeting with S.Africa's Zuma

7th January 2012, Comments 0 comments

IMF chief Christine Lagarde met President Jacob Zuma on Saturday, wrapping up a visit to South Africa in which she warned that the global growth outlook is likely to be lowered.

The International Monetary Fund head met Zuma in the central city of Bloemfontein on the sidelines of celebrations for his ruling African National Congress's centenary.

"It was a private meeting," said Treasury spokeswoman Bulelwa Boqwana, adding that no details were available.

On Friday, Lagarde cautioned that the eurozone debt crisis was taking a toll on Africa and the rest of the world, with the IMF set to release a report around January 25 that is likely to lower the global growth forecast from the 4.0 percent estimated in September.

"We are currently revisiting our world forecast," she said. "It is very likely to be revised downwards."

"We should clearly prepare for a 2012 that will not be a walk in the park, that will not be an easy journey, but will be one of effort and focus on a combination of issues -- the first one, the European crisis and its resolution."

South Africa fell into its first recession since the fall of apartheid during the 2008 global financial crisis.

While the recession lasted only nine months, the country has struggled to boost its growth rate to levels that the government says are needed to make a dent in a 25 percent unemployment rate that keeps 38 percent of the population living in poverty.

© 2012 AFP

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