The head of the International Monetary Fund (IMF) said today global economic prospects had weakened since the September 11th attacks but that recovery should continue.
IMF Managing Director Mr Horst Koehler said in speech in Tokyo: "There are still risks and uncertainties that we don't like, but on the whole we do think the recovery will continue gradually and there is not a serious risk of recession".
The speech, marking the 50th anniversary of Japan's membership of the IMF and its sister organisation, the World Bank, comes ahead of the IMF's annual meeting in late September when it will unveil its global economic forecasts.
According to German newspaper leaks, the IMF is expected to keep its 2002 global growth forecast of 2.8 per cent but lower its 2003 estimate to 3.7 per cent.
US and European growth forecasts are expected to be lowered but Japan's modest prospects will likely be raised.
Noting that US corporate scandals have clouded the outlook, the IMF chief urged the international community to improve corporate governance and accounting standards but stressed "it will be important to resist the temptation to over-regulate".