The Associated Press December 15, 2011, 4:10PM ET

Lagarde: Global economy facing gloomy prospects

The head of the International Monetary Fund says prospects for the global economy are quite gloomy at the moment and it will take concerted action by all countries to resolve an escalating European debt crisis.

IMF Managing Director Christine Lagarde says Europe's problems will not be solved by Europe alone. She says all countries must work together, with the help of the IMF, to deal with the issues raised by heavily indebted European countries.

She says if the issues are not dealt with decisively, the global economy could confront the same threats that pushed the world into the Great Depression of the 1930s.

Lagarde's comments came Thursday at a State Department conference in Washington.

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