Amidst global economic recession and financial-market fragility, the Group of Eight nations should not assume a global economic recovery is near, World Bank President Robert Zoellick said in a letter to G8 host Italian Prime Minister S. Berlusconi.
The letter, dated July 1 and copied to all G8 leaders, said interventions by central banks and governments appeared to have “broken the fall in the global economy” by stabilizing financial markets and boosting demand.
“Yet 2009 remains a dangerous year. Recent gains could be reversed easily, and the pace of recovery in 2010 is far from certain,” Zoellick wrote.
“I recognize that some developed countries are now considering a policy mix that assumes the recovery is at hand. But for the developing world, it is far too early to think of such measures.”
The Group of Eight, which is made up of Italy, France, Germany, Britain, Canada, Russia and the U.S., are expected to issue a statement on the situation of the world economy during their meeting this week which will take place in the central Italian city of L’Aquila.