European Central Bank Governing Council member Christian Noyer said turmoil in emerging markets is unlikely to throw Europe’s recovery off track.
In Europe, German business confidence rose to the highest level in more than two years, a report showed today. Last week the International Monetary Fund raised its forecast for global growth, saying the world economy will expand 3.7 percent this year, instead of the 3.6 percent, it predicted in October.
“Generally speaking, the IMF has just revised upward its global growth forecast, so there’s no particular reason that Europe should be affected by the problems encountered by a small number of countries,” said Noyer, who is also governor of the Bank of France.
Emerging-market stocks have had the worst start to a year since 2009 and currencies from Turkey to South Korea tumbled amid signs growth is slowing in China as the Federal Reserve prepared to review further stimulus cuts this week.
Though the euro-area exited its longest recession ever in the middle of last year, unemployment remains at a record high of more than 12 percent and Noyer today repeated a pledge that the ECB will keep its policies “accommodative” for a long period to foster the recovery.