IMF: Economy Not Out of Woods

International Monetary Fund Managing Director Dominique Strauss-Kahn. Photo by BGNES

International Monetary Fund Managing Director Dominique Strauss-Kahn said policy makers risk “shooting their own feet” if they withdraw measures to boost economic growth too quickly.

“Growth is resuming almost everywhere, but these growth figures are more related to public support rather than private demand,” he said at an event in the Jordanian capital on Monday, as cited by Bloomberg agency.

“Until private demand will be strong enough and sustainable to provide growth it will be difficult to say that the crisis is over.”

“We’re not out of the woods because the recovery is a recovery which is clear, which comes earlier than expected, but which is also a threat” because it may encourage some governments to withdraw their stimulus packages, Strauss-Kahn said when asked whether the IMF will raise its forecast.

The IMF raised its forecast for global growth to 4.1 percent this year, compared with a January prediction of 3.9 percent, the Italian news agency Ansa said April 3, citing a draft of a report scheduled to be published later this month.

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