A ‘double dip' recession remains likely unless governments continue their fiscal stimulus packages, the head of the International Monetary Fund (IMF) has warned.
Dominique Strauss-Kahn says another downturn could be on the cards if growth is not bolstered by public sector spending.
"We have to very cautious because this recovery remains very fragile," he warns.
"In most countries, growth is still supported by government policies. For as long as you do not have private demand strong enough to offset the need of public policy, you shouldn't exit."
He believes many developed countries lack the private sector demand needed to see continued growth, while developing Asian economies are playing a pivotal role in pulling the world out of recession.
Strauss-Kahn also hinted the IMF may raise it global growth forecast for 2010, from its current prediction of 3.1%.
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