``We have forecasts which are pointing to a sustained expansion of world trade in 2005 and we have also the feeling that a large part of the adverse effects stemming from higher oil prices has perhaps already been absorbed,'' said European Central Bank President Jean-Claude Trichet, who headed a meeting of the G- 10 central bankers in Basel. A statement by Snow that he intends to support a strong dollar was ``very important,'' Trichet added.
The global economy should expand about 4 percent this year or ``a little bit more than 4 percent,'' Trichet said, citing Rodrigo Rato, managing director of the Washington-based International Monetary Fund, who attended today's G-10 meeting.
``Some of the factors that contributed to a soft patch might very well be temporary,'' Trichet said. ``Recent inventory adjustments might already be over.''