Global recovery prospects 'appear good': Bernanke

WASHINGTON: US Federal Reserve chief Ben Bernanke said on Friday that global prospects for a return to growth from recession appeared good even as financial market strains remained but any economic expansion would be slow at first.

"After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good," he told central bankers at a meeting in Jackson Hole, Wyoming.

Bernanke said although fears of financial collapse had receded substantially, critical challenges remained as the world grappled with a financial crisis that slammed the brakes on growth following a US home mortgage meltdown.

"Strains persist in many financial markets across the globe, financial institutions face significant additional losses, and many businesses and households continue to experience considerable difficulty gaining access to credit," he said.

"Because of these and other factors, the economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels," he said in his speech entitled "Lessons from a Year in Crisis."