My comment: This interview shows first signs of common sense among the
IMF executives since months and maybe years ago. Let us hope that some
economic gurus learn this lesson too.

To analyse it accurately we have to part the global economy into two
main areas. The developed world, where economies are into the second
phase of this recession, will slump in 2009 and start rebound in 2010.
Japan will be the exception because its stronger ties with Asian
partners.

The developing world rebounded in early 2009 and then crossed to the
third phase. Its growth will be around 4.5% in 2010.

About individual economies, first of all, China´s economy will grow
between 7% and 8% in 2009 as we told here, not above 8% as authorities
told. From my point of view real good news. And around 8.5% (in my
opinion maybe higher) in 2010.

The report warns again on price inflation. Overcapacity and excess of
US dollars might (and probably will) ruin the efforts to stabilize
Western economies and in particular US economy and those too dependent
on US dollar flutuations. The sooner we can replace US dollar avoiding
the risk of global trade collapse in the meanwhile the better we all
can build a more stable and healthy global economy.

Peace and best wishes.

Xi

IMF Sees Stronger Global Rebound From ’09 Recession
http://www.bloomberg.com/apps/news?pid=20601087&sid=ag.qh1tIfwbE




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