Contraction easing, recovery likely by year-end: Zoellick

Contraction easing, recovery likely by year-end: Zoellick
The Financial Express, May 20, 2009, Page 11

Reuters, Madrid

The pace of contraction in world economic output appears to be easing and recovery could begin at the end of this year, World Bank President Robert Zoellick told Spanish television on Tuesday. “I’m neither an optimist nor a pessimist, I am uncertain, a realist. Clearly the fall has been interrupted. I think there’s a good chance that while we face declines, they will be smaller in size. The majority expect a recovery at the end of this year, at the beginning of next year,” Zoellick told an interviewer in remarks translated into Spanish by an interpreter.

Speaking ahead of a meeting with Spanish President Jose Luis Rodriguez Zapatero, Zoellick said financial market conditions were improving and urged developed countries to boost support to poorer states to ensure a truly global recovery.

“What you’ve seen is financial markets clearly showing signs of recovery in developed countries,” said Zoellick. “It’s not enough to focus on markets. If we don’t look at unused capacity in the global economy the recovery will be slower, so we have to make enough resources available to those who are weakest.”