IMF: World Suffering From "Great Recession"

Published March 11th, 2009 - 05:45 GMT

The International Monetary Fund (IMF) stated that the world is now suffering from a “Great Recession” that could trigger wide-spread poverty and civil unrest. “The global financial crisis, that might now be called the great recession, provides a sobering backdrop to our conference,” said IMF Managing Director Dominique Strauss-Kahn today. The institution, which was created after WWII, now “expects global growth to slow below zero this year, the worst performance in most of our lifetimes,” the managing director said.

A global effort to alleviate the consequences of this global recession will not only benefit the incomes of those in the developing world, but will also help their residents remain safe. “this is not only about protecting economic growth and household incomes – it is also about containing the threat of civil unrest,” Strauss-Kahn added. “I urge partner countries to support me in this,” he also noted.

Yesterday, the IMF’s sister institution, the World Bank, stated that the global economy would shrink for the first time since WWII. Bank president Robert Zoellick stated that “we need to react in real time to a growing crisis that is hurting people in developing countries.”

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