Drawing strength from extensive stimulus measures, the world economy is restarting its growth engine that stalled due to the sweeping financial crisis. However, high unem- ployment and inflationary pressures will stay with both high- income and developing countries for some time. Additionally, a more conservative financial environment will mean higher financing costs for capital-hungry developing countries. Hans Timmer, Director of the World Bank Prospects Group, discussed these issues at a press conference on January 26 in Beijing. Edited excerpts follow:

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