Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

2014-07-11 21:47 AFRICA NEWS

Read more

MEDIAWATCH

Finally, a good use for new app "Yo"

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - 11 July 2014

Read more

REPORTERS

Exclusive: an unlikely victim of the 'War on Terror'

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

FRANCE IN FOCUS

Politics: parties under pressure

Read more

FOCUS

In Burma, the rise of radical Buddhism

Read more

ENCORE!

Haute Couture: the hand-stitched clothing made in Paris that sells for the price of small yachts

Read more

  • Amazon snubs French free delivery ban with one-cent charge

    Read more

  • Exclusive: an unlikely victim of the 'War on Terror'

    Read more

  • Netanyahu resists international pressure to stop air strikes on Gaza

    Read more

  • Magnitude 6.8 quake, small tsunami hit east Japan

    Read more

  • The third-place playoff: the World Cup game no one wants to play

    Read more

  • Suspect in Brussels Jewish Museum shooting drops extradition appeal

    Read more

  • Kurdish forces take over two oilfields in northern Iraq

    Read more

  • Are French high school students getting smarter?

    Read more

  • Italy’s Trentin wins seventh stage of Tour de France

    Read more

  • Disgraced Suarez leaves Liverpool for Barcelona

    Read more

  • In pictures: Chanel, Dior and so much more at the Paris couture shows

    Read more

  • French ‘Civic Service’ eyes massive expansion amid huge demand

    Read more

  • In Pictures: Petrol station hit by Hamas rockets

    Read more

  • Manhunt as FIFA partner flees Rio hotel to avoid arrest

    Read more

  • Video: Palestinians fear full Israeli military offensive in Gaza

    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

Comments

COMMENT(S)