The head of the International Monetary Fund Dominique Strauss-Kahn said that recovery is in sight and possible if nations would work together. In a statement he said, “2009 will almost certainly be an awful year; we expect global growth to enter deeply negative territory.”
Economists have already expressed similar projections of an early recovery. The IMF chief, however, emphasizes the role of cooperation such as the adoption of policies to spur a recovery worldwide. Lack of aid for low-income countries threaten “to cast millions back into poverty; the human consequences here could be absolutely devastating.”
Strauss-Kahn said at last month’s G-20 summit in London that presidents and prime ministers from rich countries and emerging market nations focused on urgent actions needed to restore growth and on what must be done to repair some of the underlying problems that caused the world crisis.
Given past recessions, recovery is often sluggish due to weak demands. While a number of economists consider the strong gains of the US market in the past month as a strong sign of a possible early recovery, weak profit reports show that the economy still has to do much better.
Source: MSNBC
