IMF: global economic turnaround will be gradual

WASHINGTON. April 23. KAZINFORM The world economy is projected to decline by 1.3 percent this year and will recover only gradually in 2010, according to a new report Wednesday from the International Monetary Fund, Kazinform refers to Xinhuanet.
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"Achieving this turnaround will depend on stepping up efforts to heal the financial sector, while continuing to support demand with monetary and fiscal easing," the IMF said in its latest World Economic Outlook report. The IMF said what it calls the deepest global downturn since the Great Depression was caused "by a massive financial crisis and acute loss of confidence." "All corners of the globe are being affected," the IMF said. According to the report, the world economy was expected to improve only gradually in 2010, growing by 1.9 percent. The world's developed economies experienced an unprecedented 7.5-percent decline in real GDP during the fourth quarter of 2008,and output was estimated to have continued to fall almost as fast during the first quarter of 2009, the IMF report said. The U.S. economy may have suffered most from intensified financial strains and a continued fall in the housing sector. But western Europe and Asia have been hit hard by a collapse in global trade. Countries in those regions also have rising financial problems of their own and housing corrections in some national markets. Emerging economies, meanwhile, are suffering badly and contracted 4 percent in the fourth quarter, Kazinform cites Xinhuanet. See www.chinaview.cn for full version.
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