CHENNAI: Global economy is in a recovery mode which is still weak, but the overall situation is "not anywhere" like the depression of 1930s, Reserve Bank Governor Raghuram Rajan said today.
"I re-emphasise that the global economy is in recovery. It not a strong recovery by any means...recovery is weak but not anywhere that looks like depression (of 1930s)," he said when asked about his views on the world economy and its challenges.
Referring to his last week's speech, the Governor said predicting 'great depression' kind of situation by media was an unwarranted extrapolation of the content of the speech made at London Business School.
indiatimes
World economy: The hidden rocks
Large parts of the world are still struggling with the burden dumped on their shoulders by the financial crisis - even now, eight years after its onset.
And there are dangers not far beneath the surface that could easily cause a new setback.
Even if those risks don't materialise, the outlook for this year, the IMF has said, is economic growth that is only "moderate with uneven prospects across the major countries and regions".
The recovery from the financial crisis and the Great Recession of 2008-09 continues and some areas do seem to be gaining some strength. The US is a notable example and there are signs that the eurozone may be putting the worst behind it.
bbc