According to the worst-case scenario, due to the current global financial crisis, markets could plunge another 20 percent at most, but the chances of a “Great Depression,” similar to that in the U.S. in the 1930s, are “practically zero,” said Olivier Blanchard, chief economist of the International Monetary Fund (IMF), on Saturday.
"According to the worst-case scenario, governments will need a few more weeks to take the right measures, and markets could suffer another 20 percent losses. Then everything will turn around," Blanchard told the Italian daily Corriere della Sera. Blanchard also stated that it is expected that in 2009 all global economic growth will come from developing countries, adding that this could strengthen China’s position.
"Developing countries will achieve an economic growth rate of 6 percent next year, which will have political implications. In 2009, 100 percent of global economic growth will come from these countries. There will also be changes in power. China will strengthen its position from these events," Blanchard believes. (Hina)
