Washington: Stating that global economic conditions improved in the second half of 2009, with clear signs of economic recovery in most countries, the Obama Administration on Thursday told the US Congress that the recovery was strongest in emerging economies, notably in Asia.
“Global economic conditions improved in the second half of 2009, with clear signs of economic recovery in most countries.
“By the fourth quarter, signs of recovery were evident in all the economies discussed in this report, except Venezuela,” the Treasury Department said in its semi-annual report to the Congress on international economic and exchange rate policies.
“The recovery has been strongest in the emerging economies, notably in Asia. Global trade expanded and financial market conditions improved substantially in the second half of 2009.
“Nevertheless, in many countries the economic recovery was dependent on fiscal and monetary policy stimulus and in particular, labour markets remained weak,” said the 35-page report.
Observing that the world economy was pulled back from the brink and has resumed growth, it said a durable recovery is still not fully secure.
Global economic growth is now projected by the IMF to be 4.6% in 2010, which is nearly 2.5 times the pace of growth projected for 2010 in the spring of 2009, it said.
Although unemployment rates remain elevated and unacceptably high, job growth has returned, according to the report.
International trade has increased sharply and has nearly returned to the pre-crisis level following a collapse of more than 35% in the value of trade between the second quarter of 2008 and the first quarter of 2009.
The IMF expects global trade will expand faster than global output in 2010, returning to its pre-crisis pattern.
Financial markets have improved significantly and private credit is again available more broadly, although volatility has increased since spring-2010, the report said.
“Emerging market economies have recovered more quickly than most advanced economies. Economies in Asia, but also some in Latin America (Brazil, for example), have performed especially well. Some emerging market economies have begun to scale back their macroeconomic stimulus,” the Treasury Department said.