By Jason Clenfield
May 18 (Bloomberg) -- The global economy will start growing next year, said John Lipsky, the International Monetary Fund’s first deputy managing director.
“Our world economic outlook anticipates a return to global expansion by next year,” Lipsky said in Tokyo today. “However, the recovery is likely to be more gradual than in past recessions.”
Confidence in the global economy jumped to the highest level in 19 months, a Bloomberg survey showed as central bank policy makers from Federal Reserve Chairman Ben S. Bernanke to European Central Bank President Jean-Claude Trichet indicate that the recession may be easing. Lipsky also said that the current downturn is far from over and that a rebound in Asia will hinge on how strong the global turnaround is.
“It is clear that the current crisis -- that is coming to be known as the Great Recession -- is far from over,” he said. “The prospects for a broad recovery in Asia will depend on the speed of the global economic turnaround.”
To contact the reporter on this story: Jason Clenfield in Tokyo at jclenfield@bloomberg.net
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