Basel, Switzerland: The global economy is now “around” a turning point, with recovery already showing in some cases and in others the rate of contraction is slowing, G-10 central bankers said here on Monday.
“We are, as far as growth is concerned, around the inflection point in the cycle,” said European Central Bank (ECB) head Jean-Claude Trichet, as the spokesman for the regular meeting of the group of major central banks.
“In all cases we see a slowing down of the decrease of the GDP that has been observed in the last quarter of last year and the first quarter of this year,” he added after the G-10 meeting.
“In certain cases you see already a picking up, in other cases you see it continuing to fall, but at a lower pace.”
In March, the central bankers had assessed that the global economy was “approaching” a pick-up point.
However, Trichet warned on Monday that the world had to remain vigilant as the process was “ongoing.”
“We have to remain alert, we are in unchartered waters, even if we are at the inflection point and even beyond in certain economies,” he said.
Trichet pointed to some “encouraging” news in the banking sector, but also stressed that it was “no time for complacency.”