UPDATE 1-World Bank chief says double-dip recession unlikely-TV

* Global economy suffering from lack of confidence

* Countries should focus on structural reforms

* Need to have flexible foreign exchange rates
(Adds details, quotes)

By Rajesh Kumar Singh

NEW DELHI, Nov 29 (BestGrowthStock) – The global recovery continues
to be “very uncertain,” but a double-dip recession is unlikely,
the World Bank president said in an interview to an Indian news
channel to be aired later on Monday.

In June, the World Bank had warned of a possible double-dip
recession in some countries if investors lost faith in efforts
in Europe and elsewhere to tackle rising debt levels.
[ID:nN09151569]

“I don’t think that there will be a double dip and I would
not say a percentage figure because I think it’s not likely,”
Robert Zoellick told NDTV channel.

“But, what I would say is this, we are far from
finished…I think that there is a problem with confidence.”

In the aftermath of the European debt crisis, the World
Bank had called for “significant” fiscal consolidation in
advanced economies, adding the quicker it happened, the better
it would be for developing economies.

“…there are definitely risks out there and this is still
a very uncertain recovery and therefore it’s important for
government to try to focus on the structural policies,”
Zoellick said.

Zoellick advocated the need for a flexible exchange rate
policy but downplayed the importance of currency appreciation
in addressing global trade imbalances.

The United States has been cajoling China to allow its yuan
currency to rise faster, and accuses it of keeping it
undervalued to gain a trade advantage.

Foreign exchange rates are central to the current account
imbalances debate, with the United States initially advocating
the need for numerical targets as a tool to iron out rifts
between export-rich countries and debt-laden consumer nations.

“I believe that currency should appreciate but I also don’t
believe that it is the only available solution,” Zoellick
said.
(Editing by Aradhana Aravindan)

UPDATE 1-World Bank chief says double-dip recession unlikely-TV