BERLIN: The clouds over the global economy have darkened, especially since the divisive summit of leaders from the Group of Seven economic powers at the weekend, International Monetary Fund Managing Director Christine Lagarde said on Monday.

Lagarde, speaking at a joint news conference in Berlin with the chiefs of other leading economic organisations and German Chancellor Angela Merkel, said business confidence was declining due to measures that disrupt trade.

World Trade Organisation Director-General Roberto Azevedo added: "We must therefore stop this escalation of tensions. A tit-for-tat process is not going to be helpful."

(Reporting by Paul Carrel Editing by Michael Nienaber) ((paul.carrel@thomsonreuters.com;; +49 30 2888 5216; Reuters Messaging: Reuters Messaging: paul.carrel.thomsonreuters.com@reuters.net))