Recovery of World Economy Expected to Continue

Recovery of world economy expected to continue

Representatives of the G2O economic group meeting in South Korea have reportedly acknowledged on Saturday that the recovery of the global economy will continue albeit in a slower pace than hoped, according to a South Korean official.

South Korea central bank deputy governor and co-chair of the G20 finance deputies' meeting Kim Jae-Chun said that markets have overreacted to concerns about the global economic slowdown.

“There was an agreement that the (global) recovery will continue even though the speed may slow from the level we thought of two to three months ago,” Kim said after their meeting in the country's southwestern city of Gwangju.

An official from another member state, who requested anonymity, said they talked about readjusting representation on the executive board of the International Monetary Fund (IMF).

The IMF's deputy managing director John Lipsky refused to give any comment about the issue.

Members of the economic group have vowed to resolve the issue by November during the leaders' summit but Europe has so far been hesitant to agree with the proposals as it would lessen their voting rights on the IMF board.

“Everybody is working very hard on it,” said Jean-Pierre Landau, deputy governor of the Bank of France.

European Central Bank President Jean-Claude  Trichet said that Europe needs to agree more with other member states on international issues.

“I call on Europe to have a unified position,” he said, adding that this was his personal opinion and that the bank has no official statement regarding the matter.

Posted by James Fried on Sunday September 05 2010, 8:43 AM EST. All trademarks acknowledged. Filed under Featured News. Comments and Trackbacks closed. Follow responses: RSS 2.0