2009, to be a real bad economic year :IMF
London, Dec 22: The lack of fiscal stimulus by governments to tackle the global economic slowdown may make an already bad 2009 even worse, opined International Monetary Fund (IMF) chief Dominique Strauss-Kahn said in an interview on Sunday, Dec 21.
Strauss-Kahn
was
speaking
to
BBC
radio.
He
was
of
the
opinion
that
the
IMF
may
need
to
cut
its
next
economic
growth
forecasts,
due
in
Jan,
referring
to
'2009
as
really
being
a
bad
year'.
"I'm
specially
concerned
by
the
fact
that
our
forecast,
already
very
dark
...
will
be
even
darker
if
not
enough
fiscal
stimulus
is
implemented,"
he
said.
The IMF has called for fiscal stimulus, higher govt spending and temporary tax cuts, worth $120 trillion, or two per cent of global annual economic output, to fill the gap caused by slumping private demand following the credit crunch.
"The question of having social unrest has been highlighted by journalists- but it's only part of the problem," he said. "The problem is that all the whole society is going to suffer." "We've probably reached a point today where the quantity of money in the economy is fine globally. The question is even with this liquidity banks are very reluctant to lend. The main thing we have to do today is to restore confidence," he said.
OneIndia News (With inputs from Agencies)