Davos Economists Not Optimistic About 2013 Economic Recovery

The world economy appears set to emerge slowly from its hangover after the financial crisis but momentum on policy reform must not cease, economic experts attending the World Economic Forum in Davos will tell business leaders this week.

Economists sense that the risks to recovery are now much lower even if the pace of any upswing is likely to remain weak and their broadly positive sentiment is also shared by most officials attending.

Christine Lagarde, managing director of the International Monetary Fund, will go to the Swiss mountain resort with the message: "We stopped the collapse. We should avoid the relapse. It is not time to relax".

Laboured as she recognised her buzzwords were, they sum up the views of leading economic thinkers attending Davos who have lost last year's fears of an imminent collapse of the euro.