• Thinking strategically

    Do policymakers actually consider improving trade performance, asks Geoffrey Chapman.

  • Power problems

    It's an iron law: no electricity, no modern economy, says Leopold Scholtz.

  • M2M money train

    SA's biggest mobile operators have found a new revenue stream, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

IMF: Crisis to last 10 years

Oct 03 2012 19:17 Sapa-AFP

Related Articles

Greeks rally against austerity plan

Greece hoping for calmer EU waters

IMF dims SA growth prospects

Bonds unmoved by IMF statement on SA

Greece told to trim further €2.5bn

Spain heading for 'full-blown bailout'

 
Budapest - The world economic crisis could take 10 years to run its course, the IMF's chief economist Olivier Blanchard told Hungarian business news site Portfolio.hu in an interview published on Wednesday.

"It's not yet a lost decade," Blanchard said, "but it will surely take at least a decade from the beginning of the crisis for the world economy to get back to decent shape."

Urging greater solidarity between member countries of the eurozone and more integration in fiscal and economic policy, he said Europe "has to go forward" with integration to make the common currency zone a success.

"It cannot stay where it is. I think nobody really wants to go back," he said.

"When a country is doing poorly the others have to be willing to help in various ways, not only out of solidarity, but because trouble in one country may well spill over to theirs.

"This is why the fiscal union and the banking union proposals being worked on as we speak are so important," he explained.

Blanchard also said the United States has a fiscal problem which it hasn't dealt with yet.

"Most analysts are confident that when it needs to be done it will be done. I hope they are right," he said.

Elsewhere, Blanchard said Japan faced a difficult fiscal adjustment and could take decades to solve its debt problems, but that the IMF did not forecast any hard landing for China.

"China has probably taken care of its asset boom although it has slower growth than before," he said.

* Follow Fin24 on TwitterFacebookGoogle+ and Pinterest.
world economic crisis  |  imf
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
6 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...