Pauls' Revere
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http://finance.yahoo.com/news/world-bank-warns-global-growth-020454108.html
"The global economy is entering into a new phase of uncertainty and danger," said the bank's chief economist, Justin Yifu Lin. "The risks of a global freezing up of capital markets as well as a global crisis similar to what happened in September 2008 are real."
Developing countries that have enjoyed relatively strong growth while the United States and Europe struggled might be hit hard, Lin said. He said they should line up financing in advance to cover budget deficits, review the health of their banks and emphasize spending on social safety nets.
Many governments are in a weaker position than they were to respond to the 2008 global crisis because their debts and budget deficits are bigger, Lin said at a news conference.
In the event of a major crisis, "no country will be spared," Lin said. "The downturn is likely to be longer and deeper than the last one."
The bank's outlook in its "Global Economic Prospects" report issued twice a year adds to mounting gloom amid Europe's debt crisis and high U.S. unemployment.
"It is very likely that most European countries, including Germany, entered recession in the fourth quarter of last year," said Hans Timmer, the World Bank's director of development projects.
Investors have cut investments in developing countries by 45 percent in the second half of last year, compared with the same period in 2010, Timmer said.
The report follows similar warnings about the global economy by its sister organization, the International Monetary Fund, and private sector forecasters.
For the United States, the bank cut this year's growth forecast to 2.2 percent from 2.9 percent and for 2013 to 2.4 percent from 2.7 percent. As reasons, it cited the anticipated global slowdown and the on-going fight in Washington over spending and taxes. [/I
The United States is already feeling some pain from Europe's crisis. Exports to Europe fell 6 percent in November, the Commerce Department said last week.
Oh boy...here we go again.
"The global economy is entering into a new phase of uncertainty and danger," said the bank's chief economist, Justin Yifu Lin. "The risks of a global freezing up of capital markets as well as a global crisis similar to what happened in September 2008 are real."
Developing countries that have enjoyed relatively strong growth while the United States and Europe struggled might be hit hard, Lin said. He said they should line up financing in advance to cover budget deficits, review the health of their banks and emphasize spending on social safety nets.
Many governments are in a weaker position than they were to respond to the 2008 global crisis because their debts and budget deficits are bigger, Lin said at a news conference.
In the event of a major crisis, "no country will be spared," Lin said. "The downturn is likely to be longer and deeper than the last one."
The bank's outlook in its "Global Economic Prospects" report issued twice a year adds to mounting gloom amid Europe's debt crisis and high U.S. unemployment.
"It is very likely that most European countries, including Germany, entered recession in the fourth quarter of last year," said Hans Timmer, the World Bank's director of development projects.
Investors have cut investments in developing countries by 45 percent in the second half of last year, compared with the same period in 2010, Timmer said.
The report follows similar warnings about the global economy by its sister organization, the International Monetary Fund, and private sector forecasters.
For the United States, the bank cut this year's growth forecast to 2.2 percent from 2.9 percent and for 2013 to 2.4 percent from 2.7 percent. As reasons, it cited the anticipated global slowdown and the on-going fight in Washington over spending and taxes. [/I
The United States is already feeling some pain from Europe's crisis. Exports to Europe fell 6 percent in November, the Commerce Department said last week.
Oh boy...here we go again.
