Home  |  Login  |  FAQ  |  Advertise  |  Services  |  Recommend  |  FeedBack  |  Contact Us  
Home
News

 Other Sections
ACN Ghana 2008
Sports
Finance
Business Directory
Online Forms
Real Estate
Classifieds
Auto
Jobs
Events
Downloads
World Cup 2010
Travel
About Ghana
Our Services
News Headlines
 More
Poor confidence leads to danger zone: World Bank Chief
News Date: 16th August 2011


The head of the World Bank warned here on Sunday that the global economy is entering a new and dangerous phase.

On a cold Sunday night in Sydney, World Bank Chief Robert Zoellick said he would back emerging economies to help global markets pull through what he calls a time of danger.

Speaking at the Asia Society's annual dinner in Sydney, Zoellick said the world was enduring a whacky, multi-speed recovery which the world

could thank emerging markets for countering the effects of Europe's sovereign debt.

He said: "I've been observing the nature of downturn and recovery is that it's been unusual in recoveries over the post World War II period

in that it's a multi-speed recovery which you see as in emerging markets the recovery has been quite strong... while the major developed markets have obviously been struggling and have problems

with the sovereign debt, unemployment, job creation..."

The chief of the World Bank warned the world's already troubled economic recovery is in even greater trouble, but that hope would come

from the new economies.

Emerging markets, he said, are sources of growth and opportunity.

"And so part of the challenge for organizations like the G20... is how you deal with an international economy that's changing in that nature, it's a very different world."

Zoellick said a perfect storm of events had created a leadership vacuum in the United States and Europe and the ensuing drop in confidence was a genuine economic threat.

"I think there has been a convergence of some events in Europe and the U.S. that have led many market participants to lose confidence in the

economic leadership of some of the key countries."

Zoellick warned the lack of confidence meant that the danger was not over, he said, "Confidence is a fragile element of how any market economy works and I think those events combined with some of the other fragilities in the nature of the recovery push us into another danger zone and I don't say those words lightly."

Zoellick has again urged European leaders to tackle the debt crisis with more urgency, saying the Euro was a bit of an albatross around

the neck of leaders looking to reboot their crippled currency.

"When you can't devalue your currency, it's a challenge how to return to competition. What you'll see in the near term what central banks

can do is to provide liquidity but it doesn't deal with the fundamentals."

Zoellick is in Australia for an official visit and is scheduled to meet with Australian Prime Minister Julia Gillard.


Source: GNA


 More
 Search News
 
 Advanced Search

ADVERTISEMENT
  Latest News Headlines
SWEB advances preparation to launch disability institute
Airtel TRACE opens voting lines
EC ordered to Clean Voters Register
Government applauds GOIL for progressive business
Government to build five more stadia
UCC Cooperative Credit Union makes profit
US doesn't want Ghana to miss $500 million compact
Malaria is as deadly as AIDS -Medical Director
Prospective registrants turned for lack of guarantors
Two business champions get Lifetime Achievement Awards
 More latest news
 Popular News Items
Check background of micro-finance companies - President Mahama
Ecobank and Old Mutual introduce Retirement Savings Plan
EC gives directives for replacing ID Card
'President Mahama is putting money in people's pockets' - Spio-Garbrah
Ghana calls on Burkina Faso to release detained truck drivers
VALD holds pictorial health warnings exhibition
Adopt technology-based curricula. Veep tells African varsities
Association urges government to speed up Insolvency Bill
EC resolves wrong registration date hitch
Some party agents abusing challenge mandate - CODEO

Copyright BusinessGhana. All Rights Reserved.

Legal