Probability of global recession low: RBI

Kolkata : On the back of widespread fears that Europe’s sovereign debt crisis is pushing a global economic downturn, the Reserve Bank of India (RBI) Friday said the probability of a worldwide recession is low.

“The projections are Europe will have a negative two percent growth in 2012. I am just putting a number but all the people are talking about European recession. America of course is not growing dramatically. Japan is also recovering. So the probability of global recession is I think low,” Reserve Bank of India (RBI) Governor D. Subbarao said at an interactive session organized by the CII here.

“As far as India is concern, the growth rate fallen, but the characterization of this as a recession would be text book economics,” he said.

Asked when the current account convertibility will happen in India, he said this was not likely in the near future.

“We need to have fiscal stability in the country. We need to have more developed financial markets. We need to have more stable growth and steady inflation before we move the barriers on capital account convertibility,” he added.