Global economic crisis not yet over, says IMF chief

BERLIN – The global economic crisis isn’t over yet, despite positive signals from Europe’s biggest economies, the head of the International Monetary Fund (IMF) warned in comments published Saturday.

More work also needs to be done on financial-sector regulation, IMF Managing Director Dominique Strauss-Kahn was quoted as saying in an interview with German weekly Der Spiegel ahead of the Group of 20 summit in Pittsburgh Sept. 24-25.

“In the minds of too many – not only regular people but also top politicians – the financial crisis is already behind us,” Strauss-Kahn said, according to the report.

“That way of thinking is dangerous,” he was quoted as saying. “The global economic crisis continues despite the fact that Germany and France saw some positive growth figures for the last quarter.”

The two European heavyweights moved to modest growth in the second quarter. Regardless of that, unemployment will continue to rise for at least another year, Strauss-Kahn added.

Strauss-Kahn said pay systems in the financial sector need to be reconsidered and action is needed to tighten capital regulations for banks, Der Spiegel reported. He said he hoped the Pittsburgh summit would produce new momentum. –(The Philippine Star)