World Bank: global economy entered the phase of sleep

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World Bank: global economy entered the phase of sleep

27-01-2012

WASHINGTON - Veronica Smith

. The World Bank warned in a report "World Economic Outlook" issued twice a year, a slowdown in the global economy which is feared also said that the influence on developing countries.

و Economic outlook and give the World Bank's new rise in world GDP of 2.5% in 2012 after a growth rate of 2.7% in 2011.

و This new expectation is less than 1.1 point for the Bank published in June when he also relied on the rapid growth in the global economy.

. According to the World Bank, the growth will improve in the year 2013 and will reach 3.1%.

The report stated that "the world economy entered a difficult stage in which the fragility and the risk of significant backsliding."

". At a time when it seems that any financial crisis are still under control, but the report noted that "much greater risk of paralysis of the financial markets and a crisis similar to the global crisis caused by the size of Lehman Brothers still exist."

. He warned that rich countries can not rely on the cooperation of the markets to finance its deficit and growing debt.

He added that in the event of a "major crisis", states will be forced to reduce its expenses, which could increase the crisis worse.

. The World Bank expects to report a growth of 5.4%, while in developing countries will not exceed the growth in "rich countries" more than 1.4%, as it relied on the report a decline in gross domestic domestic product by 0.3% in the euro area.

He said the World Bank economists that "the slowdown in growth is a significant decline in world trade and falling commodity prices."

. They make the volume of world trade has declined by 6.6% in 2011 (compared to 12.4% in 2010, the year of the advancement of the global economy), which will continue to decline in 2012 to reach 4.7%.

The World Bank warned that the "developing countries to be prepared for the downside risks, while the new debt crisis in the euro area and weak growth in many emerging economies, the major negative impact on growth prospects in the world."

And stressed the lead author of the report, Andrew Burns in a video display Alnbug International on its website, the existence of "a lot of doubts" about the global economy and that the main threat in the World Bank forecasts are to be more optimistic than necessary.

The outlook remains favorable in the majority of low-income countries, but Burns warned that if "the crisis deepened, the one will be safe" and that "growth rates in rich countries or developing countries alike could see a collapse parallel to or even bigger than what happened in 2008-2009 ".

At the present time, rising interest rates for developing countries in international financial markets, while the decline in pumping liquidity in those countries by 45% during the period of a year in the second half of 2011, according to World Bank report, which urged the South to "prepare for the worst."

To avoid a crisis in funding, he advised the Bank of the South "to re-finance its deficit in the budget" as long as she is able to and "give priority to the expenses of social security and infrastructure" and "subjecting banks to test the resistance."

However, the Bank considered that the decline in prices of raw materials contributes to the "global decline in inflation in most developing countries, but that" the issue of food security for the majority of the poorest people, especially in the Horn of Africa is still a source of concern. "

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