IMF chief warns on global economic risks

IMF has revised downward its growth forecasts for economies such as Brazil and Russia

The head of the International Monetary Fund says there are "new risks on the horizon" for the global economy, particularly from emerging economies, at a time when many countries are struggling to remedy old problems.

IMF Managing Director Christine Lagarde says concern about emerging economies is on the rise and the organisation has revised downward its growth forecasts for economies such as Brazil and Russia.

Speaking in Lithuania, Lagarde said today that the IMF has also advised India to invest in infrastructure and urged China to switch from large projects and invest more on developing a consumer-oriented society.

Lagarde says that even though some central banks could do more to combat sluggish economic growth, monetary policy couldn't replace "everything else that needs to be done.