Deputy Managing Director Takatoshi Kato says that if governments coordinate policy efforts, a possible "double dip" recession can be prevented.

Kato announced at a news conference in Seoul Friday that the global economy will be able to avoid a double-dip if the governments follow through with an agreement reached at the Group of 20 summit last month.

The double-dip phenomenon refers to an economy, which already underwent a recession, sliding back into another recession following a short-lived recovery.

The deputy managing director went on to say that the governments implemented expansive policies almost at the same time in the wake of the global financial crisis.

However, since the speed of recovery is different from economy to economy, a government should individually tailor its exit plan in time with its own recovery.

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