topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2119.44 0.28
DAX 6339.94 0.38
IBEX 30 6543 0.13
CAC 40 3047.94 0.32
FTSE 100 5351.53 0.03
AEX 292.76 0.23
DJIA 12454.83 -0.60
Nasdaq 2837.53 -0.07
FTSE MIB 13154.8 0.36
TSX Composite 11576.47 0.09
ASX 4081.2 -0.61
Hang seng 18713.41 0.25
Straits Times 2772.75 -0.24
ISEQ 20 500.94 1.55
You are here: Home News European News Deflation threatens to worsen recession: IMF chief

European News

archive
Enlarge font Decrease font Text size


01/04/2009Deflation threatens to worsen recession: IMF chief

Britain, Ireland and Spain are most likely to be hit by deflation, says Standard and Poor’s financial research company.

MADRID – Deflation poses a risk in Europe and the United States and could exacerbate the recession and complicate recovery, the head of the International Monetary Fund said in an interview published Wednesday.

"In the short-term, the risk is deflation," Dominique Strauss-Kahn said in comments published in Spanish by El Pais newspaper, in answer to a question on the risk of a fall in prices in Europe and the United States.

"Deflation is a risk that has not been apparent for a long time. If we really enter into a situation of deflation it would complicate the recession and the recovery later on," he said.

"The paradox is that once the crisis is over, we could again face a risk of inflation."

Several countries appear set to be hit by deflation, a prolonged drop in prices considered bad for economic activity.

The IMF said in mid-March there appeared to be a high risk of deflation in the United States and Japan, and a lower risk in Europe.

Prices in Spain dropped in the month of March year-on-year for the first time since statistics began in 1961.

In Ireland, prices fell in January and February.

According to the Standard and Poor's financial research company, Britain, Ireland and Spain are the countries most threatened by deflation in Europe.

AFP / Expatica


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating



0 reactions to this article

Be the first person to add a comment
Discussion Forums

Finding your way in Switzerland

Trekking and Backpacking

Community Noticeboard Switzerland

Let's coach..Saturday.Free.In English.

Finding your way in Switzerland

Chinese Nanny (Ayi) wanted

Finding your way in Switzerland

Need Househelp who prepares Thai food

Student forum Switzerland

@SAP Business Objects Online Training in Netherlands by SAP BOSS

participate in the forums

Inside Expatica
Residence and work permits in Switzerland

Residence and work permits in Switzerland

How to apply for a residency or work permit in Switzerland for you and your family.

How to rent and buy a house in Switzerland

How to rent and buy a house in Switzerland

Information about renting property and obtaining a mortgage in Switzerland.

Switzerland's healthcare system

Switzerland's healthcare system

Information about the Swiss healthcare system, health insurance, pharmacies and emergency numbers.

Banking in Switzerland

Banking in Switzerland

Explaining Swiss currency, banknotes, credit cards and bureaux de change.