The European Central Bank (ECB) has “a lot of room” to maneuver the continent out of its current debt crisis, says New York University Professor Nouriel Roubini.
The ECB should follow the U.S. Federal Reserve's lead and cut interest rates down further in order to speed up economic recovery, Roubini tells Italian magazine L’Espresso.
The world is not due for “another global recession,” although most countries will not recover as strongly as most economists think, save China, India, Brazil and Indonesia, Roubini adds.
The International Monetary Fund (IMF) is predicting that the global economy will grow 4.2 percent in 2010, a sharp improvement from 2009, when the world's economy contracted by 0.6 percent, the worst since World War II.
China and other developing nations should fuel that growth, the IMF says.
While such recovery is positive, it's still vulnerable.
“The outlook for activity remains unusually uncertain,” the IMF says in its latest World Economic Outlook, according to the Associated Press.
“Although a variety of risks have receded, downside risks related to the growth of public debt in advanced economies have become sharply more evident.”
The 4.2 percent growth forecast issued in late April is 0.3 percentage points higher than the fund's forecast issued in January.
For 2011, the IMF is predicting the global economy to grow by 4.3 percent.
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