ROCCA DI PAPA, Italy, Oct 30 (Reuters) - Encouraging economic data in Europe and the United States does not mean the global economic crisis is over, International Monetary Fund managing director Dominique Strauss-Kahn said on Friday.
He said fiscal stimulus packages must be kept in place until unemployment starts to fall, which is likely to take 10 to 12 months.
'There are some encouraging figures, a few months ago from European countries and yesterday from the U.S. and that's all good news,' Strauss-Kahn told a news conference near Rome.
'Nevertheless it does not mean the crisis is over. The crisis will not be over until unemployment begins to decrease and that will take many months.'
He added that private demand remained very weak.
'If we want to avoid, which I think we will avoid, the risk of a double dip, it's absolutely too early to withdraw the different stimulus which have been put in place,' he said.
(reporting by Daniel Flynn) Keywords: IMF ECONOMY/ (silvia.aloisi@thomsonreuters.com; +39 06 8522 4392, Reuters Messaging: silvia.aloisi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
He said fiscal stimulus packages must be kept in place until unemployment starts to fall, which is likely to take 10 to 12 months.
'There are some encouraging figures, a few months ago from European countries and yesterday from the U.S. and that's all good news,' Strauss-Kahn told a news conference near Rome.
'Nevertheless it does not mean the crisis is over. The crisis will not be over until unemployment begins to decrease and that will take many months.'
He added that private demand remained very weak.
'If we want to avoid, which I think we will avoid, the risk of a double dip, it's absolutely too early to withdraw the different stimulus which have been put in place,' he said.
(reporting by Daniel Flynn) Keywords: IMF ECONOMY/ (silvia.aloisi@thomsonreuters.com; +39 06 8522 4392, Reuters Messaging: silvia.aloisi.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.