Don't mistake revival as end of eco crisis: IMF to countries
New Delhi: The signs of revival in the global
economy should not be confused with the financial crisis being
over and the countries should be ready with policies to
sustain the recovery, multilateral lending agency IMF has
"The current numbers should not fool governments into
thinking that the crisis is over," IMF Chief Economist Olivier
Blanchard said while releasing the World Economic Outlook.
He also asked countries around the world to coordinate
policies to achieve a global rebalancing and sustain the
Olivier's remarks assume importance in the event of G-20
nations agreeing not to withdraw stimulus packages prematurely
and coordinate actions among themselves in this regard.
IMF in its outlook for the global economy has said that
global activity is now on the rise again. However, the world
economic growth is expected to be in the negative zone of 1.1
per cent in 2009, according to IMF. This is after, the Fund
revised up its outlook on world economic growth by 0.3
percentage points for the current calendar year.
The global economic growth is expected to reach 3 per
cent by next year.
Further, the IMF pointed out that after a deep recession,
global economic growth has turned positive, driven by
wide-ranging, coordinated public intervention that has
supported demand and reduced uncertainty.
However, the recovery is expected to be slow, as
financial systems remain impaired and support from public
policies will gradually have to be withdrawn.
The rebound, it added, is mainly driven mainly by emerging
economies like China, India.
So far as Indian economy is concerned, IMF pegged India's
growth at 5.4 percent in 2009 while the economy could clock a
growth rate of 6.4 percent in 2010.
Indian economy grew by 6.1 percent in the first quarter
of this fiscal making hopes rife that the country could meet
the target growth rate of 6 percent plus as projected by the
Industrial output also grew by 6.8 percent year-on-year
in July, lower than the previous month’s upwardly revised 8.2
percent growth, but still high enough to trigger hopes of a
sustained economic revival.