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New flu could have negative impact on global economy: IMF

Press Trust of India  |  Tokyo 

The spread of new-flu in humans could have notable adverse effects on the global economy's gradual recovery anticipated by next year, an International Monetary Fund official said on Monday.  

"The risks posed by the virus are hard to predict as it is unknown regarding its spread and its mortality," John Lipsky, first deputy managing director of the IMF, said at a conference in Tokyo.  

"It could have notable effects on the global economy.Hopefully, the impact will turn out to be quite modest, as the international community learnt a big lesson on how to address a pandemic following the outbreak of the avian influenza a few years ago," he said.  

Lipsky said there are "some encouraging signs of late" in the Asian economy, which was especially battered by the economic crisis, citing improvements in credit and financial market conditions as well as business and consumer sentiments in some countries, partly owing to strong policy action s taken in the region.  

The IMF's economic outlook predicts a return to global expansion by 2010, but the recovery is likely to be more gradual than in past recessions.

First Published: Mon, May 18 2009. 15:46 IST