IMF: Seeing acceleration of global economy in 2014

IMF expects the growth rate of the global economy will accelerate this year, although it will remain below its potential levels at 4%, IMF general director Christine Lagarde said.
 
She warned, however, about the "growing risk" of deflation as it remains significantly inferior to the target rate of many central banks internationally. "We are seeing rising levels of risk for deflation which could prove to be devastating for the recovery of the global economy. If inflation is the genie, deflation is the dragon with whom we must deal decisively."
 
Lagarde also said that the gradual unwinding of monetary stimulus in the U.S. economy the Fed is still implementing (the Federal U.S. central bank) could cause some disruption in the markets.
 
But "we do not expect heavy and serious effects on this, since the reduction in the volume of purchases of securities by the Fed will be gradual. Overall the direction is positive but global growth is still very low, fragile and uneven," Lagarde added.