ECB’s Noyer-world economy recovering faster than seen

September 9, 2009

FRANCE/   PARIS, Sept 9 (Reuters) – The world economy is improving at a much faster pace than forecast but government and central bank stimulus must stay in place, European Central Bank Governing Council member Christian Noyer said on Wednesday.
   The International Monetary Fund has revised up its forecast for global gross domestic product in 2009 and 2010. 
   It now expects the world economy will shrink by 1.3 percent compared to an earlier forecast of 1.4 percent before growing by 2.9 percent in 2010, upwardly revised from a previous 2.5 percent.
   Noyer said he agreed with the improved outlook from the IMF and other institutions.
   “Since the spring we’ve had positive signs, we see an increasing number of improvements,” he said on Europe 1 radio.
   “Without question, it is going more quickly than most forecasts.”
   Noyer, who is governor of the Bank of France, said he was optimistic on the French economy after unexpected growth of 0.3 percent in the second quarter. 
   The Bank of France revised upwards its forecast for the third quarter on Tuesday saying it now expected a rise of 0.3 percent compared of its previous forecast of a flat reading.
   “We need to stay cautious but I am fundamentally optimistic. However, as long as unemployment hasn’t improved…things are still fragile so we must be very vigiliant,” he said.
   Noyer said stimulus put in place by governments and central banks should remain in place.  
   “Central banks have decided to continue their policy of economic support for the moment,” he said.
   The central banker also said currencies must be stable to allow the world economy to continue its recovery.
   “It is very important that currencies stay stable in relation to others. For about two years now we’ve had quite a big stability in the foreign exchange market,” he said.
   “It’s a very important point…for the world economic pickup. I think everybody agrees with that. We will be very attentive to that. We are watching it closely.”
   (Reporting by Anna Willard and Vicky Buffery; Editing by Victoria Main)
   ((Reuters Messaging:; +33 1 49 49 5229;
 Keywords: ECB NOYER/ 
Wednesday, 09 September 2009 08:14:11RTRS [nL9668274 ] {C}ENDS

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