Dollar to Take a Dive, says IMF Head
Prensa Latina
In declarations to the press, Rato said that the greenback may continue to fall rapidly, which, he added, would complicate the credit crisis in the United States.
Rato said there was a possibility of a worldwide recession in 2008 but this would not be his most important forecast.
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"There is another scenario. A lesser economic growth in the United States, which would have an impact on Europe and Japan," maintained Rato who is soon to leave his post in the IMF.
He also indicated that there is danger of a growing inflation as a result of the high oil prices, but also the hike in food product prices.
World markets suffered strong turmoil during the past two months from the mortgage risk in the United States.
"All these dangers come at a time when the world economy now confronts risks, unbalances, protectionism and high oil prices," Rato concluded.
From Prensa Latina
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