Dubai: Global economic recovery led by rebound in US has improved the growth prospects in developing countries like India, World Bank President James Wolfensohn said on September 19.

"Since we met in spring, global recovery has gained momentum led by rebound in US," he said adding this has accelerated world trade growth to seven per cent improving growth prospects in developing countries.

The seven per cent growth in world trade is significant particularly after its weak performance in the last two years, he said in a note prepared for the bank's development committee meeting in Dubai on September 22.

The recovery has also helped in abating of the downslide risks, he said adding "these developments together with modest gains in non-oil commodity prices and low interest rates combined with falling spreads have boosted the short-term prospects of developing countries."

Though the economic prospects are good in the short-term, it remained "fragile" in the long term because of imbalances and structural problems in the rich countries, he said.

These imbalances and structural problems could trigger the geo-political shocks, reducing the manoeurebility in macro-economic policies, he said.

Wofensohn regretted the progress in tackling global poverty was "agonisingly slow" and said there was need step on the accelerator.

It was 18 months since the historic agreement signed on reducing global poverty. Yet there was very little movement forward, he said.

PTI