IMF head worried about lack of fiscal stimulus
December 22, 2008 00:00:00
LONDON, Dec 21 (Reuters): International Monetary Fund (IMF) chief Dominique Strauss-Kahn said a lack of fiscal stimulus by governments to tackle the global slowdown may make a bad 2009 even worse, according to an interview released Sunday.
Strauss-Kahn told BBC radio that the IMF may need to cut its next economic growth forecasts, due in January, referring to "2009 as really being a bad year."
"I'm specially concerned by the fact that our forecast, already very dark ... will be even darker if not enough fiscal stimulus is implemented," he said in an interview.
The IMF has called for fiscal stimulus-higher government spending and temporary tax cuts-worth $120 trillion, or two per cent of global annual economic output, to fill the gap caused by slumping private demand following the credit crunch.