Wednesday, July 14, 2010

Double-dip recession unlikely: IMF chief

(DAEJEON, South Korea) The International Monetary Fund's chief reiterated yesterday that strong growth in Asia and Latin America made it unlikely that the global economy would suffer a double-dip recession.

Last week, the IMF upgraded its 2010 global economic growth forecast to 4.6 per cent from 4.2 per cent due to robust expansion in Asia and renewed US private demand, but kept its 2011 outlook unchanged at 4.3 per cent.

'We expect 2011 to be a little lower than the level of 2010. But all this is too far from any kind of double- dip,' managing director Dominique Strauss-Kahn said.

South Korea's Finance Minister Yoon Jeung Hyun, who attended the conference too, also voiced confidence in the global economy, saying the recent slowdown in the United States and China was temporary.

The world economy has been recovering this year from its worst downturn in decades, but signs of cooling growth in the world's largest and third-biggest economies sparked worries that the global upswing could prove short-lived.

'The recent weak economic data in the US and China is transitory with the end of governments' stimulus packages. They will be normalised soon,' Mr Yoon said. - Reuters

Source: Business Times, 14 Jul 2010

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