Tuesday, June 23, 2009

IMF hedging it's bets on economic recovery

If you look at the IMF (www.imf.org) recent projection of economic growth for the World, you will see a nice V-shape picture. Everything will be back to normal shortly.

However the words from IMF according to CNBC last week were quite different:

Worst of Crisis May Be Yet to Come: IMF Chief
The head of the IMF questioned on Monday debate about when to roll back stimulus spending, saying the world economy had yet to weather the worst of a recession that claimed a record number of European jobs.
Now the the chart above and the statement just don't reconcile. Of course CNBC is known to "stretch" what was actually said. So let's take a look at another source:

From Reuters:
* IMF says need to be cautious about economic recovery

* Strauss-Kahn says worst of crisis not over yet
The worst of the global economic crisis is not yet over but there are signs that the world has started to crawl out of recession, International Monetary Fund chief Dominique Strauss-Kahn said on Monday

It is clear that IMF is trying to hedge it's bets. They projected a nice quick recovery and if it doesn't happen, well, they told us the worst is not over.

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