Tuesday, August 4, 2009

2010: Global economy back on track

Same story, but from different voice.

According to reports today, The global economy is expected to be back on track by early next year, said former World Bank economist and bond market expert Ismail Dalla.

“The world economy is in a recovery mode,” he said, adding that his outlook analysis was based primarily on the World Bank’s latest forecast for a positive growth of 2.8% in the world economy by the last quarter of 2010.

In the report, he cautioned that “despite some signs of recovery due largely to the amount of money being pumped into the US economy, interest rates will remain low and unemployment will remain high for some time to come.”

"Commenting on the development of the domestic bond market, Dalla, now a visiting professor at the School of Business, George Washington University in the US, noted that Malaysia had the largest corporate bond market as a percentage of gross domestic product (GDP) in the world last year, surpassing that of the US and South Korea," the report said.

He also applauded Malaysia’s efforts in developing a healthy and robust local currency bond market and the recent proposal to create a private pension fund as an alternative to the Employees Provision Fund (EPF).