IMF warns global recession in 2012 'can't be ruled out'

BRUSSELS: 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."

The IMF issued its economic outlook for Europe in Brussels, at a time when the Greek-triggered sovereign debt crisis is mutating into a new banking crisis, and "therefore we recommend changing economic policy" away from austerity and back towards US and British-style stimulus, according to the 100-page report.