World Bank's chief, at G8, cautions on recovery
L'AQUILA, Italy, July 10 (Reuters) - World Bank President Robert Zoellick urged caution on Friday about predictions of a global economic recovery.
"It's an environment of high uncertainty. We have to be careful with predictions," Zoellick told reporters on the sidelines of the Group of Eight summit of rich nations in the Italian town of L'Aquila.
G8 leaders issued a statement on Wednesday acknowledging that global economic recovery was not yet guaranteed.
IMF Managing Director Dominique Strauss-Kahn told Reuters on Thursday that more stimulus measures might be needed in some countries to exit the crisis, although he also said the world economy was on track for recovery early next year.
Zoellick said more assistance was needed for the developing world because "this is coming in waves".
"(It) started as a financial crisis in the developed world, then went to the real economy in the developed world. Then it went to the real economy in the developing world. And then it goes back to the financial sector," he said.
"So now you get increasing non-performing loans in Africa. So you saw this a little bit in Brazil. Remember? At first people thought, 'Oh, well, we'll avoid it'. And it's global. You can't avoid it."
He said there were several areas of risk, including possible protectionist trade measures as countries react to growing unemployment.
"When I focus on risk now, I'm focusing on some of the ones that could affect growth: the protectionism, the banking system, what I call the X factor -- the one you never see coming, which could be influenza," he said. (Reporting by Phil Stewart; Editing by Elizabeth Piper)
