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Zoellick: World economy still precarious

(Xinhua)
Updated: 2009-10-06 09:09

ISTANBUL: World Bank President Robert Zoellick warned Monday that many risks still exist on the road of recovery as the world economy is "in a precarious state."

"We may have broken the fall in financial market but we are still some way from a self-sustaining economic recovery that provides more jobs, higher incomes, and expanded opportunities," he told reporters in a press briefing.

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"There are many risks out there. These include growing unemployment lines, rising protectionism, and still-large output gaps," he said.

"The global economy could still suffer a setback, not least in 2010 when governments plan to withdraw much of their economic stimulus and debt rollovers could be combined with a rise in interest rates," he said.

"It is still not clear who will replace the US consumer as a source of demand. The global engines of growth may have stuttered back to life, but it could easily stall," he added.

On Monday, boards of governors of the World Bank and the International Monetary Fund (IMF) jointly held the 80th meeting of the Development Committee ahead of the World Bank and IMF annual meetings on October 6-7.