Thursday, May 28, 2009

Too early to say economy is recovering

IT IS still 'too early' to conclude that the world economy is in 'recovery mode', said Finance Minister Tharman Shanmugaratnam yesterday.

While many now point to 'green shoots' in some countries and specific industries, he said there is 'little confidence' that they will spread across the world economy - or even that they will last.

He noted in his keynote address at yesterday's KPMG Asia-Pacific IFRS Conference: 'A large part of the world economy is still contracting. It is too early to conclude that we are in recovery mode.'

The topic of green shoots has been a popular talking point in recent weeks.

Mr Tharman said: 'The fastest growing sector appears to be the 'green shoots' industry itself - as of last night, Google entries on 'green shoots' had reached 5.57 million.'

'Even among the optimists, the consensus is that the recovery when it comes is likely to be weak, given the large and unresolved problems in the global financial system.'

Source: Straits Times, 28 May 2009

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