IMF chief warns US of ripple effect of 'fiscal cliff'

09 Dec, 2012

The head of the International Monetary Fund urged US policymakers on Friday to consider the implications for the rest of the world of failing to reach a deal to avoid the "fiscal cliff." "If the US suffers as a result of the fiscal cliff - a complete wiping out of growth - it is going to have repercussions around the world," IMF Managing Director Christine Lagarde told the BBC in an interview.
"If the US has 2 percent less growth, there will probably be 1 percent less growth in Mexico and in Canada, probably less so in Europe and Japan, but there will be ripple effects outside the US," she added.

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