The International Monetary Fund has urged Eurozone leaders to act swiftly in response to the debt crisis in Greece and Spain, or risk dragging down the global economy with another financial crisis.
The IMF warned that the situation was grave and could escalate into a wider downturn unless national leaders ended their disputes with a long-lasting deal. As eurozone finance ministers met in Luxembourg for crisis talks and the launch of the euro's permanent rescue fund, the IMF urged Europe and the US to promote growth to help major developing economies like China, Brazil and India .
The Washington-based lender said at the start of its annual meeting, in Tokyo, that the "downside risks are judged to be more elevated than in the April 2012 or September 2011 world economic outlook reports". The annual assessment of the global economic situation said it was not clear whether the situation was another bump in the road to recovery or a worsening of the situation. "The answer depends on whether European and US policymakers deal proactively with their major short term economic problems," it said.
The warning comes against a backdrop of slowing GDP growth across developed countries and much of the developing world as trade dries up and governments increasingly hide behind protectionist barriers.
Read more: IMF warns of fresh global crisis unless eurozone finds a fix | Business | The Guardian
No comments:
Post a Comment