World Bank chief: US not heading for double dip

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Báo Đầu Tư English - 77 month(s) ago 9 readings

World Bank chief: US not heading for double dip

World Bank chief Robert Zoellick voiced confidence Tuesday that the United States will not sink into another recession, amid widespread worries over the state of the world's biggest economy.

"I don't believe (the) United States and the world will go into a double dip," Zoellick told a news conference in Singapore.

But he said there were "high degrees of uncertainty" facing the US and the global economy.

"And I think that in the case of the US economy that we're likely to see an ongoing slow growth, ongoing high unemployment," said Zoellick.

Zoellick's comments came as global financial markets have tumbled in recent days, pulled down by renewed fears that the US economy could slip back into recession, a so-called 'double-dip'.

A double-dip recession refers to a short-lived recovery from one recession and then a new plunge back into economic contraction.

Most Asian markets were lower Tuesday, still reeling from the latest batch of US jobs data for August released last Friday, which was the worst since September 2010 and renewed fears over sovereign debt in Europe.

The closely monitored US non-farm payrolls report revealed that the economy created no jobs in August, leaving the unemployment rate at a stubbornly high 9.1 per cent.

Zoellick also touched on the eurozone debt crisis which has sparked fears the situation could worsen and affect the rest of the world, a concern shared also by IMF chief Christine Lagarde, he said.

"The reason that I and others, Christine Lagarde, have been highlighting events in the eurozone is that they can have ripple effects all around the world, not only in terms of financial and capital markets but also in terms of confidence, whether be it consumers or businesses."

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