Shiny Bulletin Bulletin Newspaper Online!

According to the news reports, the head of International Monetary Fund (IMF) has given a warning that the global economy can very well come across another down-turn, which can be called as double dip recession.

Also to this, Dominique Strauss- Khan said that countries should never exit from the stimulus packages, which have shore up growth with the help of huge amounts of government spending graph. He further said that they have to try to be much careful as this recovery remains very fragile.

According to him, economies of china and Asia are leading in terms of recovery. He said that the recovery in the advanced economies has been much slow and the best indicator is employment and private demand.
And also the Germany and France raised their growth forecast for the year independently also. As we all know that the growth in most of the countries is still supported by the government policies. And so Strauss khan said that “provided you do not have the private demand strong enough to counterbalance the public need, you shouldn’t exit “
He added that the priority of many governments will be undertaking high levels of government debt. And also, recommended that the IMF should raise its growth forecasts for the current year. The IMF is presently predicting the global economy to rise by 3.1% in 2010.
Let’s look on the growth updates of different countries:
As we have seen the two largest economies of Europe, Germany and France, raised their growth forecast for the present year.
With this Germany is expecting its economy to expand by 1.5% in 2010 from its previous prediction, which was 1.2%. French government experienced almost doubled according to its growth forecast to 1.4 % from 0.75%
Looking at this the finance minister says that they are contented that the economic development is now to some extent better than it was originally predicted. Also IMF raised the forecast for French of the present year from 1 % to 2% rather than 0.9%.