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IMF
Managing Director Christine Lagarde also warned emerging
economies like Indonesia to "be vigilant for spillovers" from
China's slowdown, tighter global financial conditions, and the
prospects of a U.S. interest rate hike.
"Overall, we expect global growth to remain moderate and likely
weaker than we anticipated last July," Lagarde told university
students at the start of a two-day visit to Indonesia's capital.
The IMF in July forecast global growth at 3.3 percent this year,
slightly below last year's 3.4 percent.
Lagarde said China's economy was slowing, although not sharply
or unexpectedly, as it adjusts to a new growth model.
"The transition to a more market-based economy and the unwinding
of risks built up in recent years is complex and could well be
somewhat bumpy," she said.
"That said, the authorities have the policy tools and financial
buffers to manage this transition."
Lagarde, who is visiting Indonesia for the first time in three
years, said Southeast Asia's largest economy had the "right
tools to actually react" to the global volatility.
"You have very sound public finances with overall government
debt in the range of twenty-ish percent relative to GDP, you
have a relatively small deficit," she said before meeting with
Indonesian President Joko Widodo.
(Writing by Randy Fabi; Editing by Simon Cameron-Moore)
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