IIF forcasts growth revival for mid 2009

19 December 2008

Policy makers need to address the unholy trinity of the financial crisis, namely funding pressure, losses on troubled assets and capital inadequacy, the IIF states.

Steep declines in real gross domestic product are likely in the current quarter and in the next quarter in the United States, the Euro-zone countries and in Japan. Overall, 2009 will see falls in output in these countries and rising unemployment, but a revival of growth may start in the late summer of next year, forecast the economists at the Institute of International Finance.

 

Policy makers need to address the unholy trinity of the financial crisis, namely funding pressure, losses on troubled assets and capital inadequacy, IIF’s Capital Market Monitor states.

 

Also, the need to stabilize asset markets relates to the need to manage the deleveraging process to limit its ability to exacerbate the economic downturn.

 

Press release

The Capital Markets Monitor and Global Economic Monitor are attached below.

 

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