<p>IMF Managing Director Dominique Strauss-Kahn said on the sidelines of the two-day Asian Financial Forum in Hong Kong that the reverse flow of "hot money" could cause trouble to the recovering economies.<br /><br />"There is a danger in having too big capital inflows coming to some countries and sometime for some reasons, this capital inflow have a sudden stop and this create difficulties," Strauss-Kahn said.<br /><br />He predicted the world economy will grow by 3 percent in 2010 while Asia, excluding Japan, can expect 7 percent growth.<br /><br />"In advanced economies, most of the growth comes from public support and private demand is still very weak," the IMF leader said.<br /><br />Regarding polices that have been put in place to fight against the crisis such as fiscal stimulus, he said finding the right time to implement exit policies is very difficult.<br />Exiting too late would waste resources, but "if you exit too early, you have a risk of a double-dip" he said, referring to a second recession.<br /><br />On China's currency, Strauss-Kahn said the yuan is unlikely to appreciate in the short term, but pressure will build up when private consumers becomes the driver of China's economy. <br /></p>
<p>IMF Managing Director Dominique Strauss-Kahn said on the sidelines of the two-day Asian Financial Forum in Hong Kong that the reverse flow of "hot money" could cause trouble to the recovering economies.<br /><br />"There is a danger in having too big capital inflows coming to some countries and sometime for some reasons, this capital inflow have a sudden stop and this create difficulties," Strauss-Kahn said.<br /><br />He predicted the world economy will grow by 3 percent in 2010 while Asia, excluding Japan, can expect 7 percent growth.<br /><br />"In advanced economies, most of the growth comes from public support and private demand is still very weak," the IMF leader said.<br /><br />Regarding polices that have been put in place to fight against the crisis such as fiscal stimulus, he said finding the right time to implement exit policies is very difficult.<br />Exiting too late would waste resources, but "if you exit too early, you have a risk of a double-dip" he said, referring to a second recession.<br /><br />On China's currency, Strauss-Kahn said the yuan is unlikely to appreciate in the short term, but pressure will build up when private consumers becomes the driver of China's economy. <br /></p>
