Global economy recovering; nowhere near depression: RBI

Chennai, July 2

Global economy is in a recovery mode which is still weak, but the overall situation is “not anywhere” like the depression of 1930s, RBI Governor Raghuram Rajan said today.

“I re-emphasise that the global economy is in recovery. It is 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.

“I gave the same speech four times before and somehow the word that came out... The first report on it was reasonable summary, even though it was close door nobody was supposed to report it, it was reasonable summary of what I said.

“Then there was summary of the summary and then there was summary of the summary of the summary. In this game of Chinese whisper at the end of it I was predicting great depression again,” he said after the RBI Board meeting here. — PTI