World economy stabilizing: Krugman (Reuters)

  May 25, 2009 -- ABU DHABI (Reuters) - The world economy has avoided "utter catastrophe" and industrialized countries could register growth this year, Nobel Prize-winning economist Paul Krugman said on Monday.

  "I will not be surprised to see world trade stabilize, world industrial production stabilize and start to grow two months from now," Krugman told a seminar.

  "I would not be surprised to see flat to positive GDP growth in the United States, and maybe even in Europe, in the second half of the year."

  The Princeton professor and New York Times columnist has said he fears a decade-long slump like that experienced by Japan in the 1990s.

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