/ 19 June 2009

IMF: Decline in world economy moderating

The International Monetary Fund (IMF) is likely to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated, a senior IMF official said on Friday.

Addressing a Turkish business conference in the southern Turkish resort of Bodrum, IMF first deputy managing director John Lipsky, however, warned it was far too early to declare victory, with financial conditions far from normal and the world economy still in recession.

”While the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery,” he said in prepared remarks to the Turkish Industrialists’ and Businessmen’s Association.

However, Lipsky said signs are emerging that the rate of output decline has moderated, financial conditions have improved, confidence is recovering gradually and indicators of future production and demand have firmed. — Reuters