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Worst of global crisis may be yet to come

The worst of the global economic crisis may be yet to come, International Monetary Fund chief Dominique Strauss-Kahn said.

Finance ministers of the Group of Eight nations agreed over the weekend that the global economy was showing encouraging signs of stabilization and started to consider how to unwind rescue steps for their economies.

Strauss-Kahn, on a visit to Kazakhstan, said he largely agreed with their position but appealed for caution in assessing the state of the global economy.

“Their (G8) stance is that we are beginning to see some green shoots but nevertheless we have to be cautious,” he said in opening remarks before closed-door talks with Kazakh Prime Minister Karim Masimov. “The large part of the worst is not yet behind us.”

Strauss-Kahn referred to credit growth as a sign that financial activity was beginning to pick up but did not say whether the IMF was ready to help with a possible “exit strategy” once economic recovery is certain. (Reuters)