May Protected content -- European Central Bank President Jean- Claude Trichet said emerging nations have weathered the global recession better than advanced countries.
Federal Reserve Chairman Ben S. Bernanke also said in prepared remarks to a Bank of Korea conference in Seoul today that “as emerging market economies become increasingly important in the global trading and financial systems, the world economy will depend even more on them to maintain strong domestic growth and economic and financial stability.”
The International Monetary Fund said last month that emerging economies, including Brazil and Russia, will expand 6.3 percent this year, nearly triple the pace of growth in advanced nations. Europe this month had to save its single currency with a $1 trillion rescue package after Greece’s sovereign debt crisis threatened to spread.
“Emerging countries have also been severely affected, but as a group remained a source of strength for the world economy,” Trichet said via video link to the Bank of Korea conference, according to the text of his speech published by the Frankfurt-based ECB. “It is therefore not surprising that the crisis has led to even better recognition of their increased economic importance and need for full integration into global governance.”
Trichet also said that “the international community has identified the G-20 as the premier forum for international economic cooperation.”
The Group of 20 accounts for about 85 percent of global gross domestic product. Its members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.S., the U.K. and the European Union. Korea holds the presidency this year.
The world economy will grow 4.2 percent this year, the Washington-based IMF predicted on April 21, after a 0.6 percent contraction in Protected content .