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IMF chief warns financial crisis will worsen in 2009

  International Monetary Fund chief Dominique Strauss-Kahn warned on Thursday that the financial crisis would worsen in 2009 and affect the whole world, during a visit to Costa Rica.

 

“I want to tell you that 2008 was a difficult year in the world economy but in no way can we expect 2009 to be better,” the IMF managing director said during a joint news conference with President Oscar Arias. “This is true anywhere, all around the world, in the United States, in Europe. The IMF is expecting negative growth next year.”

The financial meltdown has eroded economic growth and thrown the US and other major economies into recession. Strauss-Kahn again urged governments Wednesday in Jamaica to use spending, rather than interest rate cuts, to battle the global financial crisis. (The Economic Times)