World economy will stay in crisis for at least another decade, says IMF chief economist
- Post 04 October 2012
- By Matt Blake | Daily Mail Online
The world is not even halfway through the financial crisis and should brace itself for another six years of turmoil, according to a leading global watchdog.
Olivier Blanchard, chief economist at the International Monetary Fund, said it will take at least ten years to recover from the meltdown caused by the banking crash of 2008.
He added: ‘It is not yet a lost decade but it will surely take at least a decade from the beginning of the crisis for the world economy to get back to decent shape.’
The warning came amid signs that Britain has finally emerged from the longest double dip recession since the Second World War.
Experts predict that the economy grew by 0.6 per cent between July and September – the first quarter of growth since the same period last year.
But with the eurozone crisis threatening to spiral out of control, the US approaching a debt storm, and the global economy slowing from China to Brazil, the outlook remains bleak.
Economist Gerard Lyons said: ‘Is the global economy heading into another recession?
'This is now becoming a genuine possibility. Business confidence has deteriorated. Worries about the euro appear to have been the trigger for this.’
Business Secretary Vince Cable yesterday admitted the turmoil was far from over.
He said: ‘We are in a very deep crisis centred on the collapse of the banking system.
'Projecting and predicting how we get out of this crisis is very difficult indeed.’ --Daily Mail Online
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