HONG KONG: The global economy is unlikely to slip back into recession over the next few years, although such a scenario is not impossible, the International Monetary Fund’s chief economist said on Thursday.
Olivier Blanchard, the fund’s economic counselor and director of research, also said during a news briefing in Hong Kong that countries needed to return to a sustainable level of fiscal spending.
The IMF revised upward its 2010 world gross domestic product forecast but said there were significant risks to the global recovery stemming from Europe’s debt problems.
The IMF lowered its 2011 GDP growth forecasts for Britain, Canada, the euro zone, emerging economies and Japan.
