IMF chief rules out new US recession

SINGAPORE, Nov 13, 2009 (AFP) - IMF chief Dominique Strauss-Kahn Friday ruled out a "double-dip" recession in the United States once a huge dose of stimulus spending runs out, and said the world economy was slowly perking up.

Asked if the US economy could again hit the rails once the stimulus package expires next year, he told reporters: "No.

"I don't believe the double-dip scenario is a probable one. There is some risk but I don't believe it will happen," the International Monetary Fund chief said on the margins of annual Asia-Pacific meetings in Singapore.

On the global economy, Strauss-Kahn said: "We are certainly at a turning point in the recovery. Growth in 2010 and 2011, while positive, will be lower than the rate of growth before the crisis.

"Our forecast is not only for the United States but also for the rest of the world that 2010 will be the year of recovery," Strauss-Kahn said.

But he cautioned that it would be "fragile" and "sluggish", particularly for growth in jobs.

Source: AFP

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