World Bank chief warns of global economic "danger zone"
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Beijing - The World Bank president warned Saturday that the global economy is on the brink of danger due to massive debt, slow grow thand weak investor confidence.
Robert Zoellick said in Beijing that record-high food prices and volatility in commodity markets are also putting the world's most vulnerable people at risk.
"The world economy is entering a new danger zone this autumn," he said. "The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the Monetary Union, banks and competitiveness of some countries."
Zoellick acknowledged that the United States needs to rein in its debt, spending and reform the tax system to boost private sector growth.
"But we are living in a global economy. Decisions in Europe, decisions in the United States, decisions in China - they affect all of us," the World Bank chief said.
Zoellick also said that China needs reforms to build a "modern, harmonious and creative high-income society."
"If China were to continue on its current growth path, by 2030 it would have an economy equivalent to 15 of today's South Koreas, using market prices," he said. "It's hard to see how that expansion could be accommodated with an export and investment-led growth model."
Zoellick agreed with other analysts who say China should expand its domestic consumption, improve efficiency and narrow the economic divide between rural and urban populations.//DPA
Robert Zoellick said in Beijing that record-high food prices and volatility in commodity markets are also putting the world's most vulnerable people at risk.
"The world economy is entering a new danger zone this autumn," he said. "The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the Monetary Union, banks and competitiveness of some countries."
Zoellick acknowledged that the United States needs to rein in its debt, spending and reform the tax system to boost private sector growth.
"But we are living in a global economy. Decisions in Europe, decisions in the United States, decisions in China - they affect all of us," the World Bank chief said.
Zoellick also said that China needs reforms to build a "modern, harmonious and creative high-income society."
"If China were to continue on its current growth path, by 2030 it would have an economy equivalent to 15 of today's South Koreas, using market prices," he said. "It's hard to see how that expansion could be accommodated with an export and investment-led growth model."
Zoellick agreed with other analysts who say China should expand its domestic consumption, improve efficiency and narrow the economic divide between rural and urban populations.//DPA
