IMF's Lagarde says weak U.S. growth has limited spillovers

Reuters

WASHINGTON (Reuters) - Weak economic growth in the United States is a temporary phenomenon, with limited impact on the rest of the world, the head of the International Monetary Fund said on Monday.

U.S. growth in the first quarter contracted due to a harsh winter, but the IMF said it is likely to rebound. IMF Managing Director Christine Lagarde said the impact of harsh weather should renew the focus on addressing climate change, and recommended the U.S. raise its carbon tax.

"Extreme weather occurrences have a serious effect on the economy," Lagarde said at a news conference. "And extreme weather occurrences have repeated much more frequently in the last 20 years than they had in the previous century. And I think that's a valid reason to wonder about climate change, and how to deal with it."

(Reporting by Anna Yukhananov and Krista Hughes, additional reporting by Moriah Costa; Editing by Chizu Nomiyama)

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