IMF Head Sees Need For Stimulus Amounting To 2% Of World GDP
Warning that the world economy is facing its worst crisis in 60 years, Strauss-Kahn said stimulus amounting to at least 2% of global gross domestic product is required. That should provide a similar boost of 2% of GDP if it's correctly coordinated, he said.
Strauss-Kahn said G20 leaders made it clear over dinner Friday at the White House that they "clearly understand that the crisis isn't over."
While some countries, like China, have already announced stimulus plans, others seem ready to act, he said.
"Many countries are convinced that we need this and are ready to make the step forward," said Strauss-Kahn at a briefing following the G20 meeting, though he declined to name them.
The IMF will work with those countries to try to coordinate the measures, he said.
"A coordinated action plan is necessary. And the more coordinated it will be, which means governments moving at the same time, the more effective it will be."
The G20 statement vowed to broaden efforts to contain the financial crisis and revive the world economy, urging individual countries to use fiscal and monetary policies "as deemed appropriate" to support growth and stability.
The group said it would help developing countries get access to financing, including ensuring the IMF, the World Bank and other multilateral development banks have sufficient funding.
The G20 also laid out five common principles on reforming the global financial system, which it plans to take up at the next meeting in the spring.
-By Tom Barkley, Dow Jones Newswires; 202-862-9275; tom.barkley@dowjones.com
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(END) Dow Jones Newswires
November 15, 2008 17:49 ET (22:49 GMT)
Publié le 15 novembre 2008 Copyright © 2008 Dowjones
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