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World Bank President Zoellick: Global economy in danger

08-17-2011 08:37 BJT

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Financial market volatility, and ongoing debt problems in the Eurozone and US are clouding the outlook of the global economy. And the World Bank President is warning the world is living in "difficult and dangerous times" and wants governments to adopt long-term debt curbs to address current problems. Qi tianxing tells us more.

The global economy is moving into dangerous territory. This is the assessment of World Bank President, Robert Zoellick.

In the past two weeks, international stock markets have seen massive sell-offs on fears about the state of leading economies.

But not all is doom and gloom, Zoellick welcomed news the European Central Bank bought 22-billion euros worth of Italian and Spanish bonds.

The World Bank President is warning the world is living in "difficult and dangerous times"

But he adds European governments need to restructure their economies to restore investor confidence in financial markets.

Zoellick said, "I think over the past couple of weeks we've moved into a new danger zone, and it was in part the convergence of some of the events coming out of the Eurozone where, while political efforts I know were significant because you still have separate countries making decisions, they have not really got ahead of the problem and haven't really been able to deal with some of the fundamentals and structural issues. That combined with some of the uncertainty created in the discussions in the US over debt limit and spending."

Zoellick made the comments while visiting Australia, and that country's federal Treasurer agrees with the World Bank President. Wayne Swan says the best way to cope with the global economic uncertainty is "with conviction and resolve".

World Bank Group President Robert Zoellick discusses the political and economic impact of the global economic crisis, and its implications for development and globalization, during a speech in Washington September 28, 2009. Credit: Reuters/Molly Riley

Swan said, "Clearly events in the United States and events in Europe are producing great uncertainty and volatility, particularly in international markets. And the best way that we, through the G20 and as individuals, can deal with the situation is with conviction and with resolve."

Both Zoellick and Swan agree the Europe and U-S debt crisis, as well as the impacts on global market confidences will be key points of discussion at the upcoming G20 meeting.

Wayne Swan says the best way to cope with the global economic uncertainty is "with conviction and resolve".

 

Editor:Li Wanran |Source: CNTV.CN

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