Global growth 'may be sluggish'
Osaka, June 14, 2008
The world's major economies are likely to grow sluggishly for the rest of this year despite easing financial market turmoil, International Monetary Fund head Dominique Strauss-Kahn has said.
The IMF expects "several quarters of soft growth" in developed countries with a proper recovery unlikely until next year, he told a small group of reporters on the sidelines of a two-day meeting of Group of Eight finance ministers on Friday.
The US was likely to start to see a rebound at the end of this year or in early next year with Europe following close behind, the IMF head said, predicting a U-shaped recovery rather than a V-shaped one.
"We have good reason to think that the financial crisis is mostly behind us but it's too soon to say" for sure, Strauss-Kahn said.
He noted that problems in the US housing sector continued, which was increasing the risk of financial losses for banks.