WB expert for continued stimulus
SEOUL: The World Bank’s chief economist urged countries on Wednesday not to abandon their stimulus policies, citing the risk of a second dip in the global economy.
Justin Yifu Lin, who is also senior vice-president, said the global economy is showing signs of recovery but there remain a “lot of uncertainties.”
“Yes, we have a recovery but the foundation for recovery is still quite weak,” Lin told journalists on the sidelines of Global Korea 2010, an annual international forum in Seoul.
He said one of the main challenges the world faces now is excessive production capacity, which raises the risk of a double dip. “To avoid that, (countries in the world need) to maintain fiscal stimulus,” he said. “We can turn this crisis into an opportunity to promote long-term, sustainable growth.”