International Monetary Fund Director Christine Lagarde today warned countries against implementing austerity in the face of weakening economies, saying, “it’s sometimesbetter to have a bit more time” to get budget deficits under control, if doing so will lead to stronger growth:

The fund warned earlier this week that governments around the world had systematically underestimated the damage done to growth by austerity. Ms Lagarde said that, given this reassessment of the impact of fiscal consolidation on output, it was no longer sensible for governments in Europe to stick to budget deficit targets, should growth disappoint.