SEOUL, June 12 (Xinhua) -- Bank of Korea (BOK) Governor Kim Choong-soo said Tuesday that global economy remained bogged down in the crisis that spread from Wall Street to Europe.
"Despite each country's efforts over the past five years to escape from the global financial crisis, which is called the severest one since the Great Depression in the 1930s, global economy remains bogged down in the crisis," Governor Kim said in a speech for the 62nd anniversary of the founding of the South Korean central bank.
The financial crisis that started from Wall Street has spread to Europe, resulting in the sovereign debt crisis, Kim said, noting that anybody can still find neither when the crisis will end nor what would be needed to terminate the crisis.
As for Greece, Kim noted that the possibility for unanticipated uncertainty to be realized became lower than the past in stochastic terms, saying that various possible cases, which may arise from the political decision in the European country, have already been priced in.
Touching on Spain, the governor hoped that the agreement to bail out banks in Spain would serve as a clue to the solution of the country's problem. Euro zone finance ministers agreed on Saturday to lend Madrid up to 125 billion U.S. dollars to help its battered banks.
Meanwhile, Kim stressed that emerging economies in Asia should play a pivotal role in solving the current crisis, saying that Asian economic bloc's contribution to the global economic growth has increased sharply over the past five years.
According to the IMF estimates cited by Kim, contribution of emerging economies in Asia to the global GDP growth has expanded to around 50 percent for the past five years since the global financial crisis occurred. The figure was higher than the mid-40 percent level from 1980s to pre-crisis period as well as less than 30 percent level in the 1970s.
