Washington, Sep 17 (DPA) The world economy is beginning to turn around after its first recession in decades, the head of the International Monetary Fund (IMF) said Thursday.

IMF Managing Director Dominique Strauss-Kahn said poor countries have done a better job than expected of weathering the global economic storm, but will still need massive aid to curb its worst effects. He credited governments with shoring up the IMF's ability to help out those facing chronic budget shortfalls.

'This policy response, coupled with the dawning of a global recovery, leads me to be hopeful,' Strauss-Kahn told the Washington-based Centre for Global Development. 'But low-income countries remain highly vulnerable and financing needs remain great, so we cannot be complacent.'

Strauss-Kahn said solid fiscal reforms over the last decade have allowed poorer regions to survive better than in past downturns.