European debt crisis could flare up again: IMF

   Apr 18, 3:56 pm

Washington, Apr 18 (ANI): The International Monetary Fund has warned that the European debt crisis might flare up again at any time and send the global economy back into deep recession.

The Fund's Chief Economist, Olivier Blanchard, claimed that there was currently 'an uneasy calm' following tensions in financial markets at the end of 2011, the Gaurdian reports.

Referring to the risks that the country might leave the Euro, Blanchard said that they are 'doing everything possible that this does not happen.'

Blanchard reasoned that there would be contagion risks if one country departed from the single currency, and said this would be one of the circumstances in which the firewalls would be needed that would affect the sovereign bonds of other nations, he said.

Addressing the press conference to mark the publication of the IMF's flagship, World Economic Outlook , Blanchard said, "Strong policy measures were taken, new governments came to power in Italy and Spain, the European Union adopted a tough fiscal pact, and the European Central Bank injected badly needed liquidity. Things have quieted down since, but an uneasy calm remains. At any time, things could get bad again."

Global growth has been predicted to drop from 3.9% in 2011 to 3.5% but would rise to 4.1% in 2013. The Fund fears that there would be a more pronounced drop in global growth as a result of the debt crisis in the eurozone.

Noting that Britain's financial sector had been hard hit by the financial crisis, the Fund said activity would be weak in early 2012 before recovering, while in Europe, activity will continue to disappoint in the advanced economies, expanding by only about 1.5% in 2012 and by 2% in 2013.

The Fund also revealed that job creation in economies in these economies will likely remain sluggish, and the 'unemployed will need further income support and help with skills, retraining, and job searching.' (ANI)

Recent economic measures indicate potential for higher growth rate: Chief Economic Adviser Mar 5, 11:13 am
New Delhi, Mar.5 (ANI): The NDA Government's Chief Economic Adviser, Arvind Subramanian, has said that the recent economic measures introduced would power high growth rate.
Full Story
Uber acquires mapping company deCarta Mar 4, 1:58 pm
Washington, March 04 (ANI): Taxi-hailing service Uber has reportedly acquired deCarta, a platform for location services including, mapping.
Full Story
EIU survey lists India's Bangalore, Mumbai, Chennai and Pak's Karachi amid world's top five cheapest cities Mar 4, 1:07 pm
London, March 04 (ANI): A research by the Economist Intelligence Unit (EIU) has named Indian cities of Bangalore, Mumbai and Chennai amid the world's top five cheapest cities.
Full Story
BMW to be exclusive luxury mobility partner of Delhi International Airport Mar 4, 12:32 pm
New Delhi, Mar.4 (ANI-Businesswire India): German auto major BMW is now the official choice for all VIP movements at Delhi International Airport. All dignitaries, leading businessmen and eminent personalities transiting through the VIP Lounge will now be chauffeured in BMW vehicles.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY