The International Monetary says the recovery from the deepest global recession in 60 years has started, but sustaining it will require delicate rebalancing acts, both within and across countries.

IMF chief economist Olivier Blanchard says in an article published Wednesday most countries will need to raise taxes to pay off stimulus funds spent fighting the global recession.

“The recovery has started,” Blanchard said in the paper.

“The crisis has left deep scars, which will affect both supply and demand for many years to come.”

“In nearly all countries, the costs of the crisis have added to the fiscal burden, and higher taxation is inevitable,” Blanchard said.

A rebalancing among nations is needed, the IMF says, with countries like the United States increasing imports and economies like China increasing exports.

The IMF is also advising officials to keep economic stimulus in place no longer than needed to chart a path to sustainable growth.

Blanchard calls that process a “delicate rebalancing act,” in which capital flows to emerging markets “may not fully come back in the next few years.”

He cautioned that rising government debt levels mean fiscal stimulus programs cannot continue for “very long” unless private consumption and investment replace public support for growth.

IE