Global economic growth deemed slow by IMF

TOKYO: The global economic growth is slow and unstable, so concrete policies to foster it are needed, an IMF official has said.

The crisis of the Greek debt increased the risks of the world economic panorama, and reasserted the need that European authorities adopt measures to stabilize the financial markets and consolidate recuperation, John Lipsky, managing sub-director of the International Monetary Fund said yesterday.

Meanwhile, European Council president Herman Van Rompuy said that the Greek situation showed the urgency to face the economic unbalances inside the Eurozone and insisted on the importance to increase economy control.

He said that to keep the monetary union, the alliance should be reinforced in all aspects. Also, the MoodyA's Investors Service calculated the difficulties in Greece will affect the banking systems in other countries like Spain, Portugal, Italy, Ireland and the UK.

Many of these financial entities are already presenting problems, because of the excessive growth of loans, and specialists predicted there will be a long time before experts can see if the support package to Greece will be really effective.

Experts said the support does not mean the end of the fiscal crisis for Greece, since its own capacity to reduce the deficit will be decisive. The support will only be a short-term help, because of the great economic problems and the difficulties.