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Global growth still vulnerable to shocks: IMF

Source: PTI
December 11, 2009 19:21 IST
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Cautioning that economic recovery remains tentative, the International Monetary Fund has said global growth is still prone to new "shocks".

"The (world economic) recovery remains tentative in many places, and the upturn is still vulnerable to new shocks," IMF's First Deputy Managing Director John Lipsky has said.

The multilateral lender has also warned that the "sense of common purpose" worldwide to tackle the financial turmoil could waver, as countries are pulled in different directions depending on their needs and challenges.

Lipsky has called for a governance structure for global economic policymaking that would recognise the importance of emerging market countries, according to his prepared speech posted on the IMF's website.

The world economy is slowly crawling back to the growth path after being hit by one of the worst financial turmoils in decades. Going by the IMF forecast, the global economic growth is projected to touch three per cent in 2010, after an expected fall of about one per cent this year.

"Despite the generally improving data, however, the global economy still lacks the typical post-downturn growth momentum that serves to build confidence in the sustainability of recovery," Lipsky noted.

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