The global economy has begun to slowly and uncertainly recover from the crisis, and there is currently no danger of a double-dip recession, stated the International Monetary Fund (IMF).
The sustainability of the recovery, which has so far relied on political moves by governments and central banks, remains questionable, however, warned IMF spokesperson Caroline Atkinson in a regular brief address to journalists."We have seen some signs of recovery in Europe and the U.S. We believe that in the manufacturing sector, economic recovery, recovery from the crisis, has begun. However, it will take some time for this to begin to reflect in employment data," she said.
After four consecutive quarters of decline, the U.S. economy recorded growth in the third quarter, and during the same period, the eurozone also recorded its first recovery in activity. Given that the recovery in both cases was largely the result of government economic stimulus programs, there is a fear of a double-dip recession, or a scenario in which the economy achieves a brief growth only to then begin to decline again."The recovery is somewhat fragile. In the best case, growth will continue and there will be no slip back. It is important for lawmakers to continue to carefully monitor the situation," Atkinson noted. Labor markets have generally not yet begun to show signs of recovery, although there are indications of the beginning of their stabilization in the U.S. (H)
