By: Craig Torres and Scott Lanman
Source: bloomberg.com
Ben Bernanke, Chairman of the Federal Reserve said Friday that the world economy is “beginning to emerge” from a recession after “aggressive” action by central banks and governments. In the U.S. and abroad, after contracting sharply over the past year, economic activity appears to be leveling out and “prospects for a return to growth in the near term appear good”, said Bernanke.
Economists forecast the U.S. will emerge from the worst recession since the 1930s, with the economy in the third quarter expanding at a 2.2 percent annual rate, according to the median estimate in an August survey by Bloomberg News. The International Monetary Fund last month predicted the world economy will expand 2.5 percent in 2010 after contracting 1.4 percent this year.
Signs are emerging that growth is resuming in other countries, with Japan, Germany and France all expanding in the second quarter. The Paris-based Organization for Economic Cooperation and Development said Aug. 19 that the economy of its 30 members was flat in the second quarter after contracting 2.1 percent in the previous three months.
Bernanke Says Global Economy Emerging From Recession
