Global bank officials see economic improvement

Officials at the World Bank, European Central Bank and US Treasury offered cautiously upbeat comments yesterday, while home improvement retailer Lowe's also fueled hope by citing growing consumer confidence.

Treasury Secretary Timothy Geithner said the US economy has "clearly stabilised," while World Bank President Robert Zoellick, speaking in Warsaw, said the pace of decline in the global economy was set to slow. "The question is when we will return to growth in the global system and that could be late 2009 or 2010. I don't think this will be 2011," Mr Zoellick said.

Mr Zoellick's comments contrasted with remarks he made only a week ago, when he stressed the high degree of uncertainty still coloring the outlook for the global economy. Better-than-expected quarterly earnings yesterday from Lowe's Cos Inc, the No. 2 US home improvement retailer, also helped spur hope that global economic recovery may be on the way.

Lowe's not only had better-than-expected profit, but raised its full-year forecast while noting recent signs the decline in the housing market may be slowing.

"In recent weeks, we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets and home prices slow their decline," Lowe's Chief Executive Robert Niblock said.

While Mr Geithner saw the economy stabilising, he also said the United States remains in "the most challenging economic climate the country has seen in generations."