GLOBAL RECESSION

ISTANBUL, Oct. 1 (Xinhua) -- The International Monetary Fund (IMF) said Thursday
that the global recession is ending due to strong public policies and a resurgence in Asia,
but a subdued recovery lies ahead.

"The global economy appears to be expanding again, pulled up by the strong

performance of Asian economies and stabilization or modest recovery elsewhere," the
IMF said in its semi-annual World Economic Outlook (WEO) released here Thursday.

The IMF projected the global output to contract at 1.1 percent in 2009, 0.3 percentage
points lower than that projected in the update report in July, but the growth in 2010 will
reach 3.1 percent, 0.6 percentage points higher than the previous projection.

Advanced economies are projected to expand sluggishly through much of 2010, with
unemployment continuing to rise until later in the year. Annual growth in 2010 is
projected to be about 1.3 percent, following a contraction of 3.4 percent in 2009.

"In the advanced economies, unprecedented public intervention has stabilized activity
and has even fostered a return to modest growth in several economies," the report said.

The projection for U.S. growth in 2009 as a whole is minus 2.7 percent, but has been
improved to 1.5 percent in 2010.

The downward slide in Japan moderated during the fist half of 2009 and the gross
domestic development (GDP) of the world's second largest economy is expected to
contract 5.4 percent this year and grow 1.7 percent in 2010.

Growth rate is also estimated to go up in the euro zone, which is expected to turn from
minus 4.2 percent in 2009 to 0.3 percent in 2010, while the picture in Britain is to turn
bright as it would register a 0.9-percent growth in 2010 from a contraction of 4.4 percent.

In emerging and developing economies, real GDP growth is estimated to reach almost
5.1 percent in 2010, up from 1.7 percent in 2009, said the report.

"Emerging and developing economies are generally further ahead on the road to
recovery, led by a resurgence in Asia," it said.

China will lead Asia out of the economic recession by growing 8.5 percent this year
and 9.0 percent in 2010. India is expected to expand by 5.4 percent this year and 6.4
percent next year. Russia would grow 1.5 percent in 2010 up from minus 7.5 percent in
2009.

Governments launched major fiscal stimulus programs while supporting banks with
guarantees and capital injections. These measures reduced uncertainty and increased
confidence, fostering an improvement in financial conditions, the report noted.
 Meanwhile, the Washington-based organization pointed out that the pace of recovery is
slow, and activity remains far below pre-crisis levels.

Financial systems remain impaired; support from public policies will gradually have to
be withdrawn; and households in economies that suffered asset price busts will continue
to rebuild savings while struggling with high unemployment, the report said.

Thus, the report said, after contracting by about 1 percent in 2009, global activity is
forecast to expand by about 3 percent in 2010, which is still well below the rates achieved
before the crisis.

In tackling those risks and uncertainties, the IMF suggested that the key policy
priorities remain to restore the health of the financial sector and to maintain supportive
macroeconomic policies until the recovery is on a firm footing.

The global financial crisis and the ripples it sent across the world economy have
devastated banking systems, erased jobs and stagnated global trade since its beginning
last year.

On Wednesday, Turkish deputy prime minister said the global economic crisis is the
theme of the annual meetings of the Boards of Governors of the World Bank and the IMF
due to be held in Istanbul on Oct. 6-7.