IMF head says Asia leads economic recovery
Asian countries are ahead in the global economic recovery but the rebound is still very weak, IMF Managing Director was quoted as saying .
Asian countries are ahead in the global economic recovery but the rebound is still very weak, IMF Managing Director Dominique Strauss-Kahn was quoted as saying in an interview published today.
Strauss-Kahn told weekly Polityka that the IMF does not expect the global economy to fall back into recession for a second time in this crisis.
"(The global economy) is starting to recover. The most recent data confirms global economic stabilisation; a few countries have even returned to the path of growth," Strauss-Kahn said.
"Asia is most advanced on this road, but the situation is also improving in America and western Europe."
Despite that, unemployment was likely to continue growing in the future, he noted.
"However, the recovery remains very fragile. Private demand is still weak, financial tensions weigh on consumption, which means there are still free resources in the economy and unemployment will continue to grow for some time to come."
Strauss-Kahn also played down some analysts' expectations of a second bout of world recession.
"The worst part of the recession is already behind us, but the recovery will be gradual. Our main scenario does not forecast a recession with two bottoms. The global economy will be gaining momentum until the end of this year and in 2010."
The IMF head also said he saw no risk of hyperinflation as a result of government stimulus and called for stricter financial market regulation.
Reuters Last Mod: 17 Eylül 2009, 11:13