The European Central Bank has continued its positive forecast with regards to the growth of the Euro zone and has remained optimistic that gradually the world economy is recovering from the pangs of this global recession.

The ECB has raised its forecast for economic growth in the Euro zone and have kept its interest stable at one percent. This one percent interest rate was a record low coming down from 1.25% last May. Earlier on Thursday, Euro zone economic activities were seen as rising in August for the first time in 15 months. The ECB has seen its forecast for the European economies improve from a rate between -5.1% and -4.1% to -4.4% and -3.8% this year. Uncertainty and doubt still remain as the Euro zone continues its fight against the global recession. Economic activities in this zone is seen as contracting from -0.5% to 0.9%.

ECB Chairman Jean-Claude Trichet said with regards to these data that “this implies an upward revision of the ranges for both 2009 and 2010, reflecting mainly the recent, more positive developments and information… Uncertainty remains a major, major factor. The range of our forecast shows a large degree of uncertainty.”

In the midst of these forecasts, G20 country leaders are in London talking about plans and strategies to further boost the world economy and hasten its recovery from the recession. Also included in the G20 agenda are plans for banking reforms and stricter implementations of incentives for banking executives. Developing countries have also pushed for reforms in lieu of the G20 talks. They have particularly stressed the reform for global financial governance while proposing shifts in the voting power at the International Monetary Fund and the World Bank. Developing countries want these global lending institutions to focus more on their needs, aiding poorer countries out of this financial mess.

Ever since the rates were stabilized by the ECB at one percent, data have shown that economies like that of France and Germany have experienced an emergence from their own year-long recessions. The outlook though about the whole Euro zone remains unclear as economies hope that these strong showings will continue in the following months.