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)

Women's club holds candlelight vigil demanding justice for Bangalore sexual assault victim Jul 26, 2:31 pm
Bangalore, July 26 (ANI): A women's club held a candlelight march in Bangalore demanding justice for the six-year-old girl student who was sexually assaulted within a school's premises.
Full Story
Biocon reports marginal revenue for first quarter of fiscal 2014-15 Jul 26, 2:31 pm
Bangalore, July 26 (ANI): Biotechnology major Biocon Ltd has reported revenue of nearly 3.5 percent and a net profit of only 10 percent for the fiscal 2014-2015.
Full Story
India refuses to ratify trade facilitation pact at WTO until its food security concerns are addressed Jul 26, 11:01 am
Geneva, July 26 (ANI): India's Ambassador to the World Trade Organisation (WTO), Anjali Prasad, has said that New Delhi will not be pressured into accepting easier customs rules from developed countries till its food subsidy concerns are addressed.
Full Story
Google reportedly acquires Gamer Video Site Twitch.TV for $1 billion Jul 25, 7:46 pm
Washington, July 25 (ANI): Google has reportedly acquired Gamer Video Site Twitch.TV for a whopping 1 billion dollars.
Full Story
Comments

LATEST STORIES
TOP VIDEO STORIES
PHOTO GALLERY