The worst recession in several decades is moderating but it would be too early to withdraw the slew of government measures aimed at lifting the global economy, says the IMF. Group of Eight (G8) leaders endorse the IMF view saying that the economic recovery is too fragile to consider the so-called ‘exit’ strategies. Meanwhile, a top Democratic lawmaker has questioned if Obama’s economic stimulus plan is working as intended.
One of the key concerns is that the worldwide efforts to bolster growth could revive inflation and harden interest rates. India is no exception. Some experts are even worried about stagflation following the additional stimulus unveiled in the budget; especially, if monsoon plays truant and global commodity prices soar again.
