IMF predicts ‘very difficult’ new year

December 15th, 2008 - 11:07 pm ICT by IANS  

Madrid, Dec 15 (DPA) International Monetary Fund (IMF) managing director Dominique Strauss-Kahn said Monday that the global economy will continue “deteriorating”, predicting a “very difficult” year 2009.The forecasts that the IMF will make public in January will be even worse than the current ones, which predict a 2.2 percent global growth next year, Strauss-Kahn said in Madrid, where he was attending a conference.

Strauss-Kahn called for a stronger response to the crisis. He described the current international reaction as “small, poorly inspired in its design” and insufficient in its application, recommending that the G-20 group institutionalize its meetings.

It was not enough to technically reform the financial system, but to “show the man on the street that the market economy has an ethical face,” Strauss-Kahn said.

If that is not done, social unrest could follow, he warned.

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