Global recovery 'better than expected': central bankers

10th May 2010, Comments 0 comments

Leading central bankers said on Monday that a global recovery was not only "better than expected," but was also accelerating.

"We have the feeling that the global recovery is not only confirmed but has some elements, at a global level, of acceleration," said Jean-Claude Trichet, the head of the European Central Bank, speaking for central bankers meeting at the Bank for International Settlements following their meeting.

"A number of observations, particularly in the emerging world, show that the present data are better than expected. The sentiment is that (there is) some acceleration of the growth in a large number of countries," he added.

Trichet said the "global recovery" had features "which... qualify as sustained."

Despite the Greek debt crisis, which hammered stock markets and the European single currency before a massive aid package was unveiled, Trichet said the signs of recovery were also evident in eurozone economies.

"We considered that at the global level we have the positive signal. This positive signal, we also have (it) at the EU level," he said.

"I was mentioning that a number of data... were better than expected at the global level. I have to say it is also the case at the euro area," he added.

Trichet nonetheless pointed out that, at a global level, growth was more rapid among emerging economies than industrialised ones.

He also reiterated a warning against complacency.

"Let's remain cautious and prudent. I would say that I remain on the line that we have growth as an average this year which remains modest," he said.

© 2010 AFP

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