John Lipsky, first deputy managing director of the International Monetary Fund, told CNBC that several advanced economies are “either in, or very close to a mild recession.”
“Emerging market economies have also slowed, but are still growing in a relatively robust way compared to the advanced economies,” he added.
IMF is now forecasting that global growth would be slowed further by the credit turmoil and start recovering during the second half of next year.
(Watch the accompanying video for the full interview with John Lipsky, IMF's first deputy managing director...)
Lipsky called for more coherent and better-coordinated global policies to restore calm to markets around the world.
“Given the intense interrelations in the international capital markets, policy makers need to have coherent and consistent approaches if we’re going to address these challenges successfully,” he said.
—Reuters contributed to this story.