World Bank chief sees pace of economic decline slowing
The head of the World Bank said Wednesday there were signs the global financial crisis was easing but warned there were still potential risks that could dent the recovery.
By Agencies |
HELSINKI: The head of the World Bank said Wednesday there were signs the global financial crisis was easing but warned there were still potential risks that could dent the recovery.
"Globally we are likely to see the rate of decline lessen, you will still have declines but it will lessen in pace," World Bank president Robert Zoellick told reporters after meeting with government ministers from the Nordic and Baltic countries in Helsinki.
He noted that even though he hoped the financial markets had been through the worst part of the crisis, the impact on the real economy, such as exports and employment, was likely to continue.
"Frankly, in the environment like this there is just a high degree of uncertainty. In the environment of uncertainty you have to try to identify the risks," Zoellick said and listed bad loans, dwindling exports due to low demand and a possible influenza pandemic as examples of risks.
Zoellick also pointed out that in parts of eastern Europe, such as the Baltic countries, around 90 percent of the banks are owned by western European banks, which poses a potential risk if they decide to leave.
"If those banks pull back their capital or their lending, this will have a negative" effect, he explained.
"Globally we are likely to see the rate of decline lessen, you will still have declines but it will lessen in pace," World Bank president Robert Zoellick told reporters after meeting with government ministers from the Nordic and Baltic countries in Helsinki.
He noted that even though he hoped the financial markets had been through the worst part of the crisis, the impact on the real economy, such as exports and employment, was likely to continue.
"Frankly, in the environment like this there is just a high degree of uncertainty. In the environment of uncertainty you have to try to identify the risks," Zoellick said and listed bad loans, dwindling exports due to low demand and a possible influenza pandemic as examples of risks.
Zoellick also pointed out that in parts of eastern Europe, such as the Baltic countries, around 90 percent of the banks are owned by western European banks, which poses a potential risk if they decide to leave.
"If those banks pull back their capital or their lending, this will have a negative" effect, he explained.
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