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IMF warns of recovery 'beset by tensions and strains'

2-Feb-2011 11:27 AM

International Monetary Fund (IMF) MD Dominique Strauss-Kahn in a speech at The Monetary Authority of Singapore stated (01-Feb-2011) that while growth is recovering across the world, "it is not the recovery we wanted. It is a recovery beset by tensions and strains—which could even sow the seeds of the next crisis".  He described concerns related to the two-speed recovery, noting that there are "dangerous imbalances" across countries and within countries.

IMF: "I see two dangerous imbalances. First, the recovery is unbalanced across countries. While growth remains below potential in the advanced economies, emerging and developing economies are growing much faster – and some may soon be overheating. Second, the recovery is unbalanced within countries. Global unemployment remains at record highs, with widening income inequality adding to social strains," Dominique Strauss-Kahn, MD. Source: Company Statement, 01-Feb-2011.