The International Monetary Fund Chief said Sunday the global economy has pulled back from disaster, but heavy risks remain from debt in the eurozone and slowing growth. "The global economy may be on a path to recovery, but there is not a great deal of room for maneuver and no room for policy mistakes,"Christine Lagarde told an economic forum in Beijing. "Today's risks are still very much global. We are all interconnected and we are all affected by each other's policy actions." She said financial systems are still fragile, with high public and private debt in many economies. Lagarde noted that 23 per cent of the euro zone's gross domestic product would be dedicated to debt service, leading to more contractions in credit and output, according to a report of DPA.
