As the effects of the financial meltdown continue to be felt, the International Monetary Fund (IMF) warns that we face a full global recession unless world leaders redouble their efforts.IMF chief executive Christine Lagarde said her assessment of the situation is based on the current snail-pace growth of the world’s economy, which has increased the risks to recovery in the short-term.
In an effort to persuade world leaders to refocus their thinking about the economy, she has called for a harmonised policy, including mandatory recapitalisation of banks in Europe as a reliable way forward.
Lagarde, who was addressing a US Federal Reserve meeting last week, added: “There remains a path to recovery, but we do not have the luxury of time.”
This is exactly the case here in Ireland. While the Government has said several times that we are doing well by meeting our terms of the IMF-EU bailout, there can be no doubt that the level at which our economy is growing remains very slow.
While entrepreneurs continue to be denied access to finance, both business and debt worries continue to be the order of the day. The result is continuing crisis at the stock markets and high levels of unemployment.
The Government has reiterated that we will be better in the long run. But there is no guarantee of a better future unless some of the current austerity measures – which are endangering our economic recovery – are ditched.
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