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10/2/09

fundstrategy: IMF: Global Recession Is Not Over

IMF: Global Recession Is Not Over

The International Monetary Fund (IMF) says the global economy is back on the path to growth, but the recession is not over yet. In its World Economic Outlook, the IMF says although global growth is set to contract by 1.1% in 2009, this should reverse next year leading to economic growth of 3.1%. This, however, will be predominantly based on the strength of developing economies with advanced economies as a group not projected to return to sustained growth until the second half of 2010. The report suggests that the pace of any recovery is likely to be sluggish, as it will depend on the balance between the drag from the lingering impact of the financial shock and the recent increase in confidence. In particular the IMF says “activity and credit growth are likely to remain subdued in many economies” as consumption is projected to remain weakened in major economies.

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