Great Recession upon us: IMF chief

The IMF chief explained that the economic data had worsened since January, when the IMF forecast global growth of 0.5 per cent this year, kept positive by relatively bullish performances from emerging nations such as China and India. The advanced economies are already predicted to decline. "Since then the news hasn't been good," said Strauss-Kahn.

"I think that we can now say that we've entered a Great Recession."

Strauss-Kahn declined to make precise forecasts, and the IMF's considered view will be unveiled at its spring meeting in Washington next month. "This recession can last a long time unless the policies we're expecting are put in place, in which case 2010 can be a year of return to growth," Strauss-Kahn added.

The president of the Bundesbank, Axel Weber, said: "The expectation that we could neutralise this synchronised recession through short-term fiscal policy measures is false. We should not even try."

- INDEPENDENT