While outlining the current economic landscape, International Monetary Fund (IMF) today (Sep. 28), Managing Director Christine Lagarde mentioned Brazil and Russia as nations that are “showing some signs of improvement after a period of severe contraction.”

She said that the global economic is still afflicted with a number of weaknesses, but added that the perspectives of emerging and developing economies “deserve careful optimism.”

During a lecture at the Kellogg Business School, of the University of Northwestern, in the US, Christine Lagarde also said that the emerging economies, which have spearheaded the world's recovery ever since the financial crisis of 2008, are likely to further contribute with over three fourths of the global growth both this year and the next.

As for China, Lagarde said the nation provides one of the foundations for the growth experienced by emerging economies, and that the Asian country has worked in the last few years to bring balance to the expansion of its industry as a center for services, redirecting its focus towards domestic consumption. This will enable the country to achieve sustainable, if slow, growth, Lagarde argued. Nonetheless, she added, this expansion is also “robust,” as it indicates a yearly increase of 6% in the country.

Reforms in India

Christine Lagarde mentioned India, a country she said “was also embarking on significant reforms” in its economy, which brings about a yearly growth of 7%.

The bad news, she said, is that commodity exporters are still considerably affected by low prices, while Middle Eastern countries “still suffer from conflicts and terrorism.”