IMF chief warns 2009 may be ‘even darker’
The head of the International Monetary Fund (IMF) warned on Sunday that the economic situation could get even worse in 2009 if governments fail to take firm enough action.
“Our forecasts are already very dark but they will be even darker if not enough fiscal stimulus is implemented,” Dominique Strauss-Kahn told BBC radio.
“We see 2009 as really being a bad year, with recession for most advanced economies and growth decreasing for emerging economies.”
The IMF has called for global fiscal stimulus of about two percent of GDP, equivalent to some 1.2 trillion dollars.
He added that he feared recent initiatives, including that announced by the G20 in Washington last month, may not go far enough.
“I can see that some measures have been announced, but I’m afraid it won’t go far enough,” he said.
Strauss-Kahn said he understood Germany’s “reluctant” attitude to the steps announced by some countries including Britain but added it would be best if all countries act together to “face the recession”.
“I respect the traditional view of the Germans but nevertheless I think we are at a time when we should be a bit more imaginative than we have been in the past,” the French former finance minister said.
Only Question is, does he mean them or us?