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The world economy may not emerge out of crisis in 2010 due to "bubbles" created by the huge injections of money used to keep the financial system operating, World Trade Organisation chief Pascal Lamy said Friday. "You have to be realistic, it is not guaranteed," the WTO director general said on French radio when asked whether the world economy would recover in 2010.
"There is no doubt we have reached the bottom of the pool but the speed at which we are coming up again is not clear. In flooding the economic and financial system with public money we have also created bubbles which will have to be absorbed," Lamy told France Culture radio. Governments around the world have spent trillions of dollars over the past 18 months avoiding the collapse of the financial system and then trying to claw away from recession.

Copyright Agence France-Presse, 2010

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