Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Fans and players react online to Arsene Wegner's club departure

Read more

THE WORLD THIS WEEK

Syria alleged chemical attack: Gunfire delays deployment of weapons inspectors

Read more

FRANCE IN FOCUS

Cashing in on local French currencies

Read more

YOU ARE HERE

Life on the canals of northern France

Read more

INSIDE THE AMERICAS

What lies ahead for Cuba after the Castros?

Read more

#TECH 24

Discovering and harnessing the power of the sun

Read more

DOWN TO EARTH

Can France bid 'adieu' to popular weedkiller glyphosate?

Read more

#THE 51%

Harmful for your health: When gender bias affects medical diagnosis

Read more

REPORTERS

Africa’s donkeys slaughtered for Chinese ‘miracle elixir’

Read more

Business

Global growth prospects 'appear good', says Bernanke

Text by FRANCE 24 (with wires)

Latest update : 2009-08-21

Ben Bernanke (pictured), chairman of the US Federal Reserve, said on Friday that although the recovery would be "relatively slow at first", the prospects for a return to global growth in the near term "appear good".

The US financial world has finally heard its first bit of good news. The IMF said on Tuesday that the global economy was on the mend. Then on Friday, US Federal Reserve chief Ben Bernanke said in a speech that global prospects for a return to growth from recession appeared good, despite financial market strains. Though he cautioned that the nation’s woes were not over, he suggested, with great restraint, that easier times were ahead.

 

"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 said.

 

Results from the second quarter of 2009 were published last week, yielding the good news that Germany and France had each reported GDP growth of 0.3%, which, small though it may seem, officially indicated the end of their recessions after four consecutive quarters of losses. Japan and China also reported growth. In the US, however, there was not much to celebrate, with GDP dropping 1.0%. President Barack Obama said in a speech on August 11 that the US was “not out of the woods” and that things would get worse before they got better. "The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends.”

 

Bernanke’s speech, entitled “Reflections on a year of crisis,” was delivered to central bankers at a meeting in Jackson Hole, Wyoming (click here for full text of speech)

 

Bernanke said although fears of financial collapse had receded substantially, critical challenges remained as the world grapples 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.

 

The United States is expected to post positive growth in the third quarter after two consecutive quarters of contraction.

 

"We must work together to build on the gains already made to secure a sustained economic recovery, as well as to build a new financial regulatory framework that will reflect the lessons of this crisis and prevent a recurrence of the events of the past two years," he said.


 

Date created : 2009-08-21

COMMENT(S)