The International Monetary Fund head has warned that the global economy could experience another downturn – a so-called double dip recession. The Managing Director of IMF, Dominique Strauss-Kahn said countries should not exit from stimulus packages that have bolstered growth through huge amounts of government spending. He said in most countries, growth is still supported by government policies. For as long as countries do not have private demand strong enough to offset the need of public policy, they should not exit. He said tackling high levels of government debt will be a priority for many governments. He suggested that the IMF would raise its growth forecasts for this year. The IMF is currently predicting the global economy will grow by 3.1 per cent in 2010. Europe's two largest economies, Germany and France, also raised their economic growth forecasts for the year. Mr. Strauss-Kahn added that China and Asian economies are leading the recovery
News On AIR | January 18, 2010 8:10 PM
IMF warns of double dip recession