Although there are signs of recovery in the world , Christine Lagarde said the potential risks should not be overlooked is fitting .
One is the fact that inflation in the euro zone by 0.8 % , still " well below the target of " 2 % desired by the European Central Bank ( ECB ) .
Lagarde spoke on the final day at the World Economic Forum in Davos .
Click Deflation can inhibit growth , as prices and asset values continue to fall .
Lagarde said the global economic outlook - although there are signs of recovery everywhere - there is a " risk of old " and " new risks " .
Risks include failure to continue the old banking reform and rebalancing the economy , he said .
The new risk is how developing countries respond to the reduction of economic stimulus in the U.S. , and the problems facing the country that the rate of inflation remains below target .
Mario Draghi , the ECB president , said at the same conference that the bank is ready to act if necessary , but he insisted that deflation has not been a problem for the euro zone .
He said euro zone inflation is " quiet , and is expected to remain quiet " for about two years .
