By Karolina Slowikowska
WARSAW (Reuters) - The pace of decline in the global economy is set to slow and it could see resumed growth as early as late 2009, World Bank President Robert Zoellick said on Monday.
Zoellick also told reporters during a trip to Warsaw that Poland was better positioned than many countries to weather the global slowdown but added it should not be complacent.
"My sense is that, while we will still have declines, the rate of the declines (in the global economy) will lessen," Zoellick said.
"The question is when we will return to growth in the global system and that could be late 2009 or 2010. I don't think this will be 2011."
Last week, Zoellick stressed the high degree of uncertainty still colouring the outlook for the global economy but said Chinese growth could surprise on the upside after its government acted swiftly to stimulate domestic demand.
Central and eastern Europe have been particularly hard hit by the global crisis as investors fled riskier emerging markets. Several countries in the region, including Hungary and Latvia, have had to seek emergency help from international lenders.
Commenting on the once-booming region's plight, Zoellick said: "In the short term the crisis will dry up short-term foreign direct investment."
Poland, with the largest economy in ex-communist central Europe, is better placed than most to survive the downturn because of its large internal market and relatively robust consumer spending, he said.
"But one still has to be attentive to the fact we are in the middle of a global crisis. Poland also depends heavily on exports," he said, adding that he was in Warsaw to discuss with the government potential risks and how the World Bank can help.
Poland's recent decision to tap into a flexible credit line provided by the International Monetary Fund for well-run emerging market economies should "anchor financial stability," Zoellick said.
Zoellick also confirmed that the World Bank and Poland's top lender PKO BP <PKOB.WA> were in talks about a $500 million loan to support Polish businesses struggling to cope with tougher lending conditions and scare cash sources.
(Writing by Gareth Jones; Editing by Andy Bruce)