IMF chief warns of sluggish global recovery
05 Sep 2009
Although the global economy appears to be emerging from the worst financial and economic crisis in the post-war period, the recovery will be sluggish, and a jobless recovery remains a risk, International Monetary Fund (IMF) managing director Dominique Strauss-Kahn at Bundesbank lecture in Berlin yesterday.
''I am concerned about the social and economic costs of high unemployment, which will persist even as financial markets and output stabilises,'' he said.
He opined that stimulus measures adopted to combat the global crisis should be withdrawn only when the economic recovery has taken hold and unemployment is set to decline.
There were some media reports that IMF has revised up its forecast for global gross domestic product in 2009 and 2010.
The report said IMF now forecasts the world economy will shrink by 1.3 per cent in 2009, versus an earlier fore cast of 1.4 per cent contraction, before growing by 2.9 per cent in 2010, upwardly revised from it July forecast of 2.5 per cent (See: IMF ups global economic growth forecast to 2.5 per cent).
IMF is expected to announce it GDP forecast at its meeting next week.