IMF chief urges Brazil to get economy back on track

WASHINGTON D.C., April 15, 2016 -- International Monetary Fund (IMF) Managing Director Christine Lagarde speaks at a press conference during the IMF-World Bank 2016 Spring Meetings in Washington D.C., capital of the United States, April 14, 2016. (Xinhua/Bao Dandan)

RIO DE JANEIRO, April 14 (Xinhua) -- The head of the International Monetary Fund (IMF) said Thursday that "very cold winds are blowing" in Brazil, and the country badly needed to bring its economy back on track, a local news website reported.

"Brazil's economic situation is very worrying in terms of unemployment, inflation...and growth potential," Christine Lagarde, managing director of the IMF, was quoted by Globo News as saying during a speech in Washington.

The Brazilian economy is currently mired in recession, with rising unemployment and inflation and a high interest rate of 14.25 percent.

"We are waiting, no matter what the internal political situation, for uncertainty to be removed and for Brazilian macroeconomic policy return to stability," added Lagarde.

Furthermore, Brazil must adopt policies that allow it to meet its fiscal objectives and build "a business climate that will allow growth," Lagarde continued.

Lagarde's remarks came the same week as the IMF released its growth projections for Brazil, stating the country is likely to contract by 3.8 percent in 2016 and see zero growth in 2017.

The organization believes continued domestic uncertainties in Brazil are restricting the government's capacity to formulate and execute policies, according to the World Economic Outlook released by the IMF Tuesday.