IMF Head Warns Against Exiting Stimulus Packages Early
IMF Head Warns Against Exiting Stimulus Packages Early

On Monday, while acknowledging a much faster-than-expected economic recovery, a top official of the International Monetary Fund warned the Government against pulling back its anti-crisis measures too early, asserting that this could easily pave the way for another downfall.

Managing Director of IMF, Dominique Strauss-Kahn said that the private sector demand is "still very weak" across most of the world nations, and the unemployment rate has every chance of rising once again in the US, Europe and Japan over the coming months.

His remarks seem to suggest that despite the fact that there are very strong signs of a rebound in the economies around the world, many important international experts still feel that it is too early for policy-makers to start pulling back the state-backed stimulus packages offered.

The recovery has been recorded as "stronger and faster" across the Asian countries as compared to the IMF forecast which came last autumn.

"Even in advanced economies (in general), recovery (has been) faster and has come sooner than expected. But if you exit too early (from the stimulus steps), then you'll have the risk of going back into recession", Mr. Strauss-Kahn said.

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