World Economy In Distraught, World Bank President Claims

by khalid on 05/09/2011 · 0 comments

President of the World Bank, Robert Zoellick, claimed on Saturday that the economy is in danger. He said that the confidence of the investor in the global market is weakening while also the growth is getting delayed. In Beijing, the President spoke about the problems US and Europe are facing due to debts and how the weaker section of the world are suffering from the high value of food and commodities.

The two countries in question, US and Europe, need to concentrate on their financial problems in order to get out of the prevailing meltdown. As it is, crisis in Europeis affecting the banks and Monetary Union. Robert Zuellick also stated that his own country, US, needs to look into the serious issues of debt, trade policy and spending.

But while talking about China, he appreciated its incredible stock market, growth in the global market and its position in the global indices. He was positive that in another decade or so,China will rise to the level of a high income nation from the upper-middle nation it is today. However, he also showed concerns about the investment and export model in the country and how it will affect the growth.

Although China is the second biggest economy in the world, its national income is still way less than of US. Critics explain that it is due to its dependence on exports; if they consume their domestic goods better, they will have much brighter chance to grow. It must try to decrease income taxes and improve healthcare facilities to increase domestic consumption.

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