World economy has turned corner - IMF chief

International Monetary Fund head Mr Horst Koehler has said the world economy is heading for strong growth if the right policies…

International Monetary Fund head Mr Horst Koehler has said the world economy is heading for strong growth if the right policies were followed.

"On the threshold of 2004, the world economy has decisively turned the corner. We know there are still risks but I am confident that, with the right policies, the global economy is poised for a return to robust and sustained growth," he told an Americas-wide summit last night.

He urged the region's leaders to push for market-based economic reforms and the sound management of public finances, pointing out that some Latin American nations are still running too much public debt.

"Persistent high levels of public debt in the region can still imperil what has been achieved," Mr Koehler said in a speech.

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He also said more trade was "the single most important engine for growth in the region" and called on leaders to further cut barriers to international commerce.

US President George W. Bush and 33 other leaders from the Western Hemisphere were in the audience.