SEOUL, Feb 24 (Reuters) - Global economic authorities need to maintain stimulus policies as the world economy is still facing downside risks, a senior World Bank official said on Wednesday.
Justin Lin, chief economist and senior vice-president of the Wolrd Bank, also said most Asian countries were unlikely to experience sovereign debt problems.
"It's too early to exit. Uncertainties remain. The downside risks include excess capacity. Under-utilised capacity is still very high, meaning unemployment will be maintained at a high level and consumption will be slow and conservative," Lin told reporters at a conference in Seoul.
The remarks came a day after data showing U.S. consumer sentiment fell to a 10-month low, raising doubt about the pace of a global economic recovery.
Sustained fiscal stimuli may increase government debts, but Asian countries are not expected to face sovereign credit problems, he said.
"They, in general, can endure external shocks, given sufficient FX reserves. Government deficits are relatively small and manageable," Lin said. (Reporting by Cheon Jong-woo; Editing by Jonathan Hopfner)