The global economy has entered a dangerous and uncertain phase, International Monetary Fund Managing Director Christine Lagarde said in a speech in Beijing on Wednesday. She said the global economy could face a "lost decade" of low growth and high unemployment.

"If we do not act, and act together, we could enter a downward spiral of uncertainty, financial instability, and a collapse in global demand," says Lagarde.

"There are dark clouds gathering in the global economy, and Asia will need to watch them carefully," she added. In the face of increasingly interconnected world, no country and no region can go it alone.

Lagarde urged advanced economies to undertake policies that are needed to restore confidence and lift growth. In Asia, policy must respond nimbly to changing circumstances. She expressed willingness to help in complementing regional financial arrangements in Asia.

RTTNews