Recovery hopes fading

Optimism over a stronger and broader than expected global recovery is evaporating as the euro-zone debt crisis deepens.

Chinese policymakers should prepare for a possible double-dip of the world economy while pressing ahead with domestic efforts to squeeze out asset bubbles and prevent economic overheating.

Less than a month after it raised the forecast for global growth to 4.2 percent this year compared with a January forecast of 3.9 percent, the International Monetary Fund now has to join euro-zone countries in the unprecedented 110-billion-euro ($147 billion) three-year Greek bailout.