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The World Bank
Hans Timmer, Director of Development Prospects
The Year of the Dragon
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The World Bank is warning that developing countries around the world should prepare for further downside risks to their economic growth as the eurozone debt crisis stalls consumption in developed economies.
Hans Timmer, Director of Development Prospects at the World Bank, points out the downside risks facing the year 2012.
"The Year of the Dragon will be a very difficult year for the global economy. There are significant downside risks that remain. Those risks are not only coming out of Europe. There are also risks in the oil market, there are risks in other high-income countries, there are risks of course in emerging economies. But the most significant ones are at the moment in Europe."
Many developing countries experienced strong economic growth over the last decade despite the 2008 global financial crisis, because of steadily increasing commodity prices, deepening equity markets and expanding international trade.
But as growth in most rich economies continues to flat-line, uncertainties and vulnerabilities may begin to significantly dampen the performance of many emerging markets which are now the main engine of growth for the world economy. |