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IMF: World Economy to Shrink 'Below Zero' This Year

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Top official of the International Monetary Fund (IMF) said on Tuesday that the world economic growth could dip "below zero" this year, according to agencies' reports.

The statement was made by IMF Managing Director Dominique Strauss-Kahn at the opening of two-day conference in the Tanzanian capital of Dar es Salaam, with finance ministers and central bank governors from across Africa to discuss the continent's move in the current situation.

Strauss-Kahn was quoted as noting that continued deleveraging of world financial institutions, together with a collapse in consumer and business confidence is depressing domestic demand all over the world.

Prior to the meeting, the IMF has urged donor countries to honor their commitment to African countries in the face of the global economic downturn so as to help prevent the continent's economic gains from slipping away.

The downturn in global growth, the decline in most commodity prices, and tighter credit have significantly worsened the economic outlook for sub-Saharan Africa, the IMF said in an assessment released before the conference which started on Tuesday in Dar es Salaam.

In addition, in an effort to better financially support crisis- affected African countries, the IMF on Tuesday announced its plan to set up two more technical assistance centers in Africa.

Strauss-Kahn told participants to the IMF conference for African finance ministers and central bank governors that his institution would open one new technical assistance center in western Africa and another one in southern Africa.

The IMF already has three such assistance centers in Gabon, Mali and Tanzania to help deliver support.

(Xinhua News Agency March 10, 2009)