Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Israel-Gaza: Back to Square One?

Read more

BUSINESS DAILY

Russia targets McDonald's over tensions with West

Read more

MEDIAWATCH

'New York Post' slammed for publishing ISIS execution images

Read more

DEBATE

Back to Square One?

Read more

DEBATE

Israel-Gaza conflict: 72-hour ceasefire deal sets stage for Cairo talks

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

FOCUS

Spain's El Hierro to become world's first self-powered island

Read more

IN THE PAPERS

A bellwether for what not to do

Read more

ENCORE!

Luc Besson back in action with Scarlett Johansson in 'Lucy'

Read more

  • US forces tried to rescue slain reporter from IS captors

    Read more

  • Israeli air strike kills three top Hamas commanders

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

  • Deadly street battles hit Ukrainian rebel stronghold

    Read more

  • US attorney general visits Missouri town after fatal shooting

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Brazil’s Silva launches bid after Campos plane crash death

    Read more

  • Netanyahu compares Hamas to IS, Gaza offensive to continue

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • France’s ex-PM Juppé sets up presidential clash with Sarkozy

    Read more

  • France’s Hollande says global security ‘worst since 2001’

    Read more

  • France urges Iran, others in region, to join fight against IS

    Read more

  • A new view on Normandy landings, 70 years on

    Read more

  • Dozens killed as landslides strike Japan’s Hiroshima

    Read more

Business

'Great recession' could spark civil unrest, IMF chief tells France 24

Latest update : 2009-03-11

The International Monetary Fund (IMF) has warned that the world is in the grip of a "great recession" that could return millions to poverty and spark civil unrest. It expects global growth to fall below zero this year.

AFP - The IMF warned Tuesday the world was gripped by a "great recession" that could throw millions back into poverty and spark civil unrest, as the United States appealed for joint action by nations against the crisis.
   
"The global financial crisis, that might now be called the great recession, provides a sobering backdrop to our conference," IMF Managing Director Dominique Strauss-Kahn told delegates at an anti-crisis meeting in Tanzania.
   
"The IMF expects global growth to slow below zero this year, the worst performance in most of our lifetimes," he said, urging wealthy Western countries to maintain financial support for low-income nations.
   
The IMF director also said there was now "a real risk that millions will be thrown back into poverty" across the African continent and that the economic crisis raised "the threat of civil unrest, perhaps even a war."
   
The worldwide recession also raised fears in Europe of a sharp erosion in public health as financially strapped patients are forced to defer care.
   
In Tokyo plummeting exports dragged down the Tokyo stock market to a 26-year low.
   
"So far, there are no visible signs of a fast recovery. The economies in industrial countries remain weak and the current crisis in Eastern Europe is a further strain," said Simon Juncker, an analyst at Germany's Commerzbank.
   
Germany too reported another sharp fall in export earnings in January, the fourth straight monthly decline.
   
In Washington, US Federal Reserve Chairman Ben Bernanke urged world governments to forge a common strategy to regulate the financial system in order to tackle the worst crisis since the Great Depression of the 1930s.
   
"We must have a strategy that regulates the financial system as a whole, in a holistic way, not just its individual components," he told the Council on Foreign Relations.
   
Stock markets in most of Asia, Europe and the United States bounced back from big losses on Monday however, boosted mostly by investors hunting for bargains and an upbeat profit report from US banking giant Citigroup.
   
Citigroup chief Vikram Pandit said in an internal memo obtained by AFP that the company was seeing a return to profitability in early 2009 after punishing losses last year, although he warned about continued "market volatility."
   
On Wall Street, the Dow Jones Industrial Average and the Nasdaq index rocketed up 4.29 percent and 5.85 percent respectively in afternoon trading.
   
London's FTSE 100 index of leading shares closed up 4.88 percent, while the Frankfurt Dax gained 5.28 percent and the Paris CAC 40 soared 5.73 percent.
   
But in Tokyo, the Nikkei stock market index fell 0.44 percent to hit its lowest reading since October 1982 on investor worries that there is no quick fix in sight for the troubles afflicting Asia's leading economy.
   
China was meanwhile the source of another worrisome indicator as it reported its first drop in consumer prices -- deflation -- in more than six years.
   
Deflation, combined with recession, can sap corporate earnings, cut deeply into growth and employment and reduce consumer spending.
   
A director of the European Central Bank stressed that the ECB would not hesitate to slash its main interest rate again from its current level of 1.50 percent to zero if the 16-nation eurozone is threatened by deflation.
   
The ECB "is ready to cut its rates again, including to zero... That would be especially true if the economy was effectively threatened by deflation,," board member Lorenzo Bini Smaghi told the German financial daily Boersen-Zeitung.
   
European officials also began to mobilise against what they fear could be a plunge in public health standards during a prolonged economic crisis.
   
European Union Health Commissioner Androulla Vassiliou has sent a letter to her 26 colleagues in the bloc's executive arm, urging them to act now.
   
"She said that it is our political responsibility to follow very carefully the evolution of the health and social situation in each of the 27 EU member states," her spokeswoman Nina Papadoulaki said.
   
The commissioner's concerns were prompted by a World Health Organization warning in January that "if government budgets come under pressure and household income drops, the demand on public services will increase."
 

Date created : 2009-03-10

COMMENT(S)