World Bank VP warns of double dip recession risks

"There remain risks of a double dip recession, although it has not occurred yet," Lin told Xinhua on the sidelines of a seminar here marking the 30th anniversary of the China-World Bank partnership.

"Nations should be cautious about withdrawing stimulus policies they have in place and make moves according to new circumstances," Lin added.

Developed nations were facing a dilemma on whether to continue proactive fiscal policies to buoy their economies, Lin said.

To continue the measures would add fiscal pressure on the governments and threaten economic security and, on the other hand, to withdraw policies now would result in a slump in demand and an increase in unemployment rates, Lin explained; Kazinform cites Xinhua.

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