World Bank’s President Believes Global Economy Is In Danger

President of World Bank, Robert Zoellick, said that the global economy is making its way into a new danger area, as economic growth has slowed down, while the confidence of investors has weakened.

The President spoke in Beijing, Robert pushed Europe and the United States of America to deal with their problems of debt, and also noted that the food prices, that have reached a new record high, as well as markets marked by volatility are posing a threat to the most vulnerable people of the world.

Robert added further, saying that the ongoing financial crisis persisting in Europe has taken the shape of a sovereign debt problem, with grave implications for financial intermediaries, Monetary Union, as well as the competitiveness of few countries.

He said that the United States of America, which he referred to as ‘his county’, should address the problem of debt spending effectively, and also exercise a tax reform that will provide boosting to the growth in the private sector of the economy.

Talking about China, Zoellick was upbeat. Currently, the President of World Bank is heading a study of World Bank on how the country can better its model of economic growth.

The President said that the question is that if China can stay away from the middle income trap, where the national productivity and growth in income stalls once per capita incomes strikes $3000 to $6000.

Even though China is the 2^nd largest economy of the world, the national per capita gross income in the country is only $4260, which is less than 1/10^th of per capita incomes in the United States of America.

Critics have always pointed out that China is dependent on huge investments and exports as the driving factor of its economy but it should also focus on strengthening its domestic industries and boost local domestic production to provide a boost to the locals of the country.

Related News / Articles:

1. Spring Season Growth In U.S Economy Of 1%
2. United States Flayed Over Losing Credit Ratings By China
3. China Might Be Ranked As Worst Protectionist Nation Ever
4. Stock Prices Plunge; Economy Suffers
5. United States Economy Bears Down; Oil Approaches $93
6. Strained Banks And Threatened Consumers Due To Debt Crisis