Is The Global Recession Over?

At least it is according to Olivier Blanchard, the International Monetary Fund’s chief economist. Today, Blanchard said that the global economic recovery has begun.

However, Blanchard is warning that to sustain it will require for the United States to boost its exports and Asia to focus on its imports.

Blanchard said:

“The turnaround will not be simple, the crisis has left deep scars, which will affect both supply and demand for many years to come. The United States consumption, which account for about 70 percent of the US economy and a large chunk of global demand, will not return quickly to pre-crisis strength as Americans deal with trillions of dollars in losses. From the point of view of the United States, a decrease in China’s current account surplus would help increase demand and sustain the US recovery. That would result in more US imports, which would help sustain world recovery.”