Dominique Strauss-Kahn believes that government’s across the globe should continue to bolster growth amid fears of a ‘double-dip’ recession.
Strauss-Kahn believes the economy remains fragile and points to the fact that recovery has been led by China and Asia, pointing to a more sluggish recovery in developed countries.
He says: “The best indicator is private demand and unemployment.
“In most countries, growth is still supported by government policies. For as long as you do not have public demand strong enough to offset the need of public policy, you shouldn’t exit.”
Strauss-Kahn has also suggested the IMF may raise its growth forecast for 2010. The IMF currently predicts the global economy may grow by 3.1 per cent this year.