Recession cannot be ruled out: IMF

IMF Europe director Antonio Borges warned on Wednesday that a global recession in 2012 "can't be ruled out," citing a possibility that "activity will turn downwards."

IMF Europe director Antonio Borges warned on Wednesday that a global recession in 2012 "can't be ruled out," citing a possibility that "activity will turn downwards."

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The IMF released its economic outlook for Europe in Brussels, at a time when the euro zone sovereign debt crisis is mutating into a new banking crisis, and "therefore we recommend changing economic policy" away from austerity and back towards stimulus.

He said: "We still predict growth in 2012, but very modest," with the probability the economy will "stall" by year-end making recession a live threat, especially in Europe.