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World Economy to Recover for Growth: IMF
World economic growth will begin to recover by the end of this year and gather pace next year, said Horst Koehler, Managing Director and Chairman of the Executive Board of the International Monetary Fund (IMF).
In an interview with Xinhua during the ongoing Eighth Asia- Pacific Economic Cooperation Finance Ministers Meeting (AFMM) in Suzhou, Koehler said that despite that there are some uncertain factors in current world economy, the favorable factors will overwhelm unfavorable ones.
He said that the decisive action of the United States to lower interest rates for seven consecutive times and drastic reduction of taxes will produce effects. The interest rate reduction in Europe and other regions will also spur world economic growth.
He said that the decline of oil price and inflation pressure, and measures adopted by Asian economies after Asian financial crisis will bear fruit.
Koehler noted that the strong performance of China's economic development will contribute to the stability of the economy in the Asia and Pacific region and the world at large.
He said that all those favorable factors made him to be cautiously optimistic about the prospect of world economy.
Yet he pointed out that the current slowdown in economic growth in the United States, Europe and Japan will produce obvious effects on exports of emerging market economy and add to the uncertainties of the world economy.
But he said that the recovery of economic growth in the United States is a matter of months, not of another long year.
The slowdown in world economy will also make the restructuring of developing economies more painful, increasing unemployment and social pressures in the economies, Koehler said. However, he held that the economies should not slow down their step in restructuring and should adopt proper macroeconomic policies to stimulate economic development.
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