IMF chief sees global economic recovery from late 2009
Güncelleme Tarihi:
IMF Managing Director Dominique Strauss-Kahn on Monday said he saw the beginning of a global economic recovery in late 2009 or early 2010 after a very difficult year. (UPDATED)
"The global outlook will continue to deteriorate," Strauss-Kahn was quoted by AFP as saying during a conference in Madrid organized by the Bank of Spain on Spanish-IMF relations. "The possibility of global recession is really in front of us," he added.
He said declining growth in emerging countries such as
China's economic growth could slip to 5.0 or 6.0 percent, from the 9.7 percent forecast by the IMF for 2008 and 8.5 percent in 2009, he said.
"We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting the effectiveness of some fiscal policy measures," he added.
"The most urgent need is a big foot on the accelerator of fiscal expenditure," he said.
"2009 will be a very difficult year, the figures in January will probably be worse than the previous one," Strauss-Kahn said.
The IMF last month forecast that advanced economies would contract next year for the first time since World War II and called for government spending to battle the global financial crisis.
It lowered its global economic growth forecast by 0.8 point to 2.2 percent.