World economy "now recovering"

Finance ministers and central bankers have concluded that the global economy is recovering after the recent turmoil.

Izvor: BBC

Monday, 22.10.2007.

13:16

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Finance ministers and central bankers have concluded that the global economy is recovering after the recent turmoil. But at the annual meetings of both the World Bank and International Monetary Fund in Washington, they cautioned that vigilance remained necessary. World economy "now recovering" Their comments come despite rising evidence that the downturn in the US housing market could be spreading. Global stocks continued to fall on Monday because of US economy concerns. Oil prices also remain near record highs, because of fears over continued fighting between the Turkish army and Kurdish rebels on the Iraqi border. "The consensus was that markets are better than in August," said U.S. Treasury Secretary Henry Paulson. "It has been slowly improving, but it is going to take a while." The World Bank said turmoil that hit the world markets in August, sparked by the downturn in the U.S. sub-prime mortgage market, had only had a limited impact on developing countries. Despite the sharp share falls in developed countries, the World Bank said global economic growth remained strong, led by China, India and Brazil. Separately at the meetings in Washington, which conclude later on Monday, South Africa's finance minister complained that the US and Europe overly dominated both the World Bank and International Monetary Fund. Trevor Manuel said voting power needed to be adjusted to reflect the rising economic power of countries such as China and India. "You're telling these countries [U.S. and European nations] that have acquired these rights that in the interests of broader democracy, they got to give it up," he said. "And that's a problem we run into, which is why it will require monumental persuasion."

World economy "now recovering"

Their comments come despite rising evidence that the downturn in the US housing market could be spreading.

Global stocks continued to fall on Monday because of US economy concerns.

Oil prices also remain near record highs, because of fears over continued fighting between the Turkish army and Kurdish rebels on the Iraqi border.

"The consensus was that markets are better than in August," said U.S. Treasury Secretary Henry Paulson.

"It has been slowly improving, but it is going to take a while."

The World Bank said turmoil that hit the world markets in August, sparked by the downturn in the U.S. sub-prime mortgage market, had only had a limited impact on developing countries.

Despite the sharp share falls in developed countries, the World Bank said global economic growth remained strong, led by China, India and Brazil.

Separately at the meetings in Washington, which conclude later on Monday, South Africa's finance minister complained that the US and Europe overly dominated both the World Bank and International Monetary Fund.

Trevor Manuel said voting power needed to be adjusted to reflect the rising economic power of countries such as China and India.

"You're telling these countries [U.S. and European nations] that have acquired these rights that in the interests of broader democracy, they got to give it up," he said.

"And that's a problem we run into, which is why it will require monumental persuasion."

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