The global economy faces a possible risk of double-dip recession as the recovery is uneven and fragile and most advanced economies are facing high unemployment rates, the International Monetary Fund (IMF) chief said here Thursday.
“We need to sustain global recovery. It’s not done yet. At the IMF we don’t believe that double-dip is the most probable forecast, but it is a possible risk and we must avoid it,” IMF Managing Director Dominique Strauss-Kahn said at a business conference here.
He said a coordinated effort by the G20 leaders has helped bring speedy recovery in the global economy.
“We must avoid any risk of going back to negative growth,” Strauss-Kahn said at an interactive session organised by the Federation of Indian Chambers of Commerce and Industry (FICCI).
The IMF chief said the world was looking to Asia and especially countries like India and China to play a greater role in global economic affairs.
