IMF warns drastic measures needed to prevent financial crisis worsening

The International Monetary Fund (IMF) has warned that the financial crisis will trigger a deep and severe global downturn unless drastic action is taken.

In its latest world economic outlook report, the IMF said the global economy is now showing indications of a marked slowdown in growth and that measures are now required to restore financial confidence, after it has been dented due to high commodity prices, the housing collapse and the deepening financial crisis.

The organisation is calling on Governments to co-ordinate their actions and added that measures taken to deal with the problems should send a strong signal to improve market confidence.

Its report coincides with this week’s IMF-World Bank meeting in America, which will see finance ministers and economic experts come together from around the globe.

The IMF added that economies such as the US have been the worst hit due to its larger financial sectors and higher levels of borrowing.

Meanwhile, in the UK, the British Chambers of Commerce (BCC) today warned that the UK economy is heading towards a recession.

A quarterly survey of 5,000 companies carried out by the BCC, which represents small and medium sized companies, found that business confidence is at an all time low.

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