World Bank: Recession risks low for US economy

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06-09-2011 | 06:04
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World Bank: Recession risks low for US economy
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World Bank: Recession risks low for US economy

The US economy is unlikely to fall back into recession but there are risks, World Bank President Robert Zoellick said on Tuesday.    

"I don't believe that the United States or the world will go into a double-dip but there's high degrees of uncertainty," Zoellick told reporters in Singapore.    

The United States is more likely to go through a period of slow growth with ongoing high unemployment, he added.    

Group of Seven financial leaders, worried about risks to global growth, are likely to agree this week to keep monetary policy accommodative, slow fiscal consolidation in countries where that is possible and implement structural reforms, a G7 source said.      

"The main issue will be the slowdown in the global economy and what is the best way to tackle that," a G7 official with knowledge of the preparations for the meeting said.   

The source said that there was a sense among G7 countries that the global economy had entered the most difficult period since the collapse of Lehman Brothers and that there was a risk of recession.   

A recession can either be defined in technical terms as two straight quarters of contraction, or as with positive growth but a widening output gap.

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