This is still lower than the global economic growth of 3.7 percent.
Mr Milesi-Ferretti noted Nigeria's (economic) growth of about 1.9 per cent this year to rise to about 2.3 in 2019, with South African economy, now in technical recession at only 0.8 per cent growth rate this year.
He said the previous governments had taken loans recklessly, which has resulted in the country's debt ballooning from Rs 6 trillion to Rs 30 trillion in the past 10 years alone.
He said the dollar causes complications for emerging economies, though it's not going away anytime soon.
"There is a positive relation between the debt to GDP ratio and the level of GDP per capita".
Countries are mostly in a "strong position", she said, "which is why we believe we are not seeing what is referred to as 'contagion'".
The risk of a global financial crisis initiated by sharp capital outflows in emerging markets due to the divergence of monetary policies in the USA and developing countries remains small but will grow as the Federal Reserve continues to raise its interest rates, as it is expected to do this year and next.
The International Monetary Fund forecast Monday that Japan's economy will grow 1.1 percent this year, up 0.1 percentage point from its estimate in July due to the uptick in growth and domestic demand in the April-June quarter. In the last few years in India private debt has declined from nearly 60% to 54.5.
"So, it's very stable".
While defending rate hikes, Lagarde added Thursday that uncoordinated increases in advanced economies were contributing to destabilising capital outflows from emerging markets.
"That said, risks could rise sharply, should pressures in emerging-market economies mount or if trade tensions escalate".
"Take China, for example".
According to reports, International Monetary Fund and Pakistan had disagreed over the exchange rate parity, as the State Bank of Pakistan (SBP) believed the exchange rate of Rs 137 to a U.S. dollar by end of the current financial year 2018-19 would be enough to address the challenges.
As China works to compile a full general government balance sheet, this picture will come into clearer focus, he added.
He said the Nigerian government needs to shore up its tax and non-oil revenue to enable it finance infrastructure and social intervention programmes ahead of a looming global economic meltdown. So, the aggregate - over three per cent this year, close to four per cent next year - is despite the largest economies in the continent doing poorly.
While banks have increased their capital and liquidity buffers since the global financial crisis a decade ago, they remain exposed to highly indebted companies, households and sovereigns, as well as to holdings of opaque and illiquid assets, and to the use of foreign currency funding.
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