Despite some uncertainty and market volatility, the United States is not likely to see an economic contraction in the near term, IMF chief Christine Lagarde said Thursday.
On a day when Wall Street has dropped more than two per cent, Lagarde said "there's a question mark about growth prospects going forward" but the concerns are "a little bit overdone."
"I don't see the elements of recession in short order," she said on CNBC, and the IMF is forecast 3.7 per cent US growth next year which "is not bad."
Asked about the impact of the tariff battle between the United States and China, Lagarde said if it stopped now the direct hit to their economies would be "minimal."
But she warned that "if you add the indirect damage if you're factoring confidence, market apprehension and uncertainties...then you're talking about much more than that."
Disclaimer: No Business Standard Journalist was involved in creation of this content