As the United States faces the grim prospect of a nearterm recession, World Bank president Robert Zoellick reckons that the rising economies of China, India and some others will act as alternative growth poles for the global economy.
“Today, China and India are engines, still facing complex and difficult problems, but driving motors of growth,” Zoellick said in a key speech ahead of next week’s spring meetings of the International Monetary Fund and the World Bank.
This “welcome diversification of the sources of growth” is what is most strikingly different about the current downswing phase, he noted and promised assistance to these growth drivers if they are confronted by the credit storm and liquidity crunch.
Zoellick’s comments came on a day when US Federal Reserve chairman Ben S Bernanke acknowledged for the first time that the US economy may be in a recession, facing the prospect of contraction in the first half of the year.
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