IMF warns advanced economies could dip back into recession
IMF Managing Director Christine Lagarde reacts as she attends a press conference during the second day of the G20 Summit on November 4, 2011 in Cannes, France. World’s top economic leaders attended the G20 summit in Cannes on November 3rd and 4th, and debated current issues surrounding the global financial system in the hope of fending off a global recession and finding an answer to the Eurozone crisis.
The International Monetary Fund warned countries with advanced economies could dip back into recession if policies to stimulate growth are not made with greater urgency, Reuters reported.
“Policy paralysis and incoherence have contributed to exacerbating uncertainty, a loss of confidence, and heightened financial market stress," the IMF in note published Friday. "To reduce this uncertainty, these economies need to move quickly to put in place credible medium-term consolidation plans, which will help preserve room for adequate short-term fiscal support to the recovery.”
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The IMF mentioned the US, Japan and some European economies with regards to uncertainty how they would attain fiscal sustainability.
Christine Lagarde, head of IMF, spoke in Beijing earlier this week about the European debt crisis having the potential to leave the global economy in collapse.
GlobalPost: IMF chief warns Europe could push world economy into "lost decade"
“Our sense is that if we do not act boldly and if we do not act together, the economy around the world runs the risk of downward spiral of uncertainty, financial instability and potential collapse of global demand,” Lagarde said.