Biggest fall

14/04/2009

According to the predictions of the International Monetary Fund, during this year the world economy will fall by 0.5 per cent. In countries concentrated on production the economies will fall by 3-3.5 per cent. Such predictions were made by Masud Ahmed, the head of the IMF department of Middle East and Central Asia, during a recent discussion on the topic of Influence of the Global Economy and Crisis on the Economy of Armenia. He says this is the worst prediction on part of the IMF and there has not been such economic fall in the world ever. However, the IMF official believes that the situation will become stabile in 2010. “In fact there will be no development in developed countries, but there will be some stability,” he said and added that stability in the mentioned countries depends on the policies implemented by the respective governments in this phase. Specifically, he believes that in this phase governments should implement a policy targeted at providing liquidity, cleaning the banking system and fight protectionism. However, the IMF official believes that if governments fail to do so, the world economic crisis will become worse than now.