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World Bank: global growth heading for a crisis from which "no one will be saved"
The world economy will grow by only 2.5, compared with forecasts of 3.6. Eurozone, U.S., China, India, Japan all se downward trend. Growth in developing countries will be 5.4, 1.4 in rich countries,. Need to promote social welfare and infrastructure programs. Food prices fall by 14%, but the problem of food will remain crucial for poor countries.
Beijing (AsiaNews / Agencies) - The World Bank has cut its global growth forecasts, also warning emerging nations. If the crisis persists, especially in the eurozone, the descent will be very hard and no nation will be spared.
Presenting the report on the global economy, Justin Lin, chief economist of the body, said that the economy of the world will grow by only 2.5% in 2012 (compared with forecasts of 3.6), the euro area will shrink to 0.3% (previous estimates of 1, 8), and the U.S. will grow by 2.2 (compared to 2.9). For 2012 the growth prospects of Japan have also changed (1.9% from 2.6), China (8.4 from 8, 9) and India (1.9% from 6.5)
The data released in Asia today (yesterday in the U.S.), is impressive when compared with the predictions of 2011 (2.7%) of 2010 (4.1) and 2009 (2.9). The Bank has, however, added that "even these weak results are very uncertain" and that if the euro zone deteriorates even more, the "negative result would be even longer and deeper" than the previous crisis in 2008, and no nation would be spared.
Growth for developing nations will be 5.4% (the forecast was 6.2) and those of the rich nations of 1.4 (from 2.7 predicted).
The WB recommended a commitment to social security programs and re-launch infrastructure investment. It notes that, thanks to the crisis, in most developing countries many prices have fallen and inflation has declined. Despite this, it adds, "the safety of food for the poor - including the Horn of Africa - remains a fundamental concern." From a peak in February 2011 (in correspondence with the "Arab Spring"), prices fell by 14%.