Stabilisation is uneven and recovery will likely be sluggish.

The IMF’s World Economic Outlook Update is subtitled Contractionary Forces Receding But Weak Recovery Ahead.

Their Global Financial Stability Report Market Update is subtitled Policies Have Reduced Systemic Risks But Vulnerabilities Remain.

While capital injections have helped staunch the bloodletting, financial systems remain impaired and will remain a drag on economic recovery.

More than that, the uncertainties remaining in the finance industry combined with the failure to address moral hazard provide a breeding ground for opportunism. This raises the risk that medium to long term impairment of the financial system will recur and with that damage to the social fabric.

Also see IMF: Workd Economic Update – Recession Loosens Grip But Weak Recovery Ahead