Terror unlikely to impact world economy - IMF

The international anti-terrorist campaign is unlikely to have a major impact on the world economy or on Russia's economic growth…

The international anti-terrorist campaign is unlikely to have a major impact on the world economy or on Russia's economic growth, the head of the International Monetary Fund (IMF) said today.

"We don't think this (fight against terrorism) will have a major impact on the macro-economy in the world and in Russia," Mr Horst Koehler said.

"We expect a recovery of the US economy, (while) the European economy, despite slowing down, is still strong," Mr Koehler said.

He also said: "We believe Russia will not need money from the IMF" despite facing a stiff debt repayment schedule.

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The IMF chief is completing a three-day visit to Russia, his first since taking office last year, during which he held talks with Russian President Vladimir Putin.

Mr Putin told Mr Koehler yesterday the Russian economy was "in good shape" but did not rule out resorting to IMF aid if the situation worsened.

However, Mr Putin also noted that Russia was ready to pay back its debt to the IMF more quickly than expected.

AFP