IMF calls for 'concerted' response

WASHINGTON, March 19 (UPI) -- An International Monetary Fund report prepared in advance of a Group of 20 meeting in London calls for "concerted policy action" to fix the financial crisis.

"Turning around global growth will depend critically on more concerted policy actions to stabilize financial conditions as well as sustained strong policy support to bolster demand," the report released Thursday says.

The IMF report says the global economy is likely to contract for the first time in 60 years.

Economic activity worldwide will contract by as much as 1 percent in 2009, IMF said.

World economies could return to growth in the third quarter of 2010, but that would be "conditional on comprehensive policy steps," the IMF said.

The IMF estimates global economic activity shrank at an annual rate of 5 percent in the fourth quarter of 2008.

The IMF said the United States could see positive growth in the third quarter of 2010. In Europe, export demand has fallen and policy stimulus more modest than in the United States. In Japan, exports have plunged and domestic demand fallen sharply, the report said.

The financial sector in Japan is also struggling, even though it is "not at epicenter of the crisis," IMF said.