WB: world economy stepping into "new danger zone"

PanARMENIAN.Net - The world economy is stepping into a "new danger zone," World Bank President Robert Zoellick said on Saturday, September 3, as growth slows and investor confidence weakens.

Speaking in Beijing, Zoellick urged Europe and the United States to tackle their debt problems, and noted that near record-high food prices and volatile commodity markets are threatening the most world's vulnerable people.

"The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the Monetary Union, banks, and competitiveness of some countries," he said. "My country, the United States, must address the issues of debt, spending, tax reform to boost private sector growth, and a stalled trade policy."

Turning to China, where he is leading a World Bank study on how the nation can improve its economic growth model, Zoellick was upbeat. China is "well positioned" to become a "high-income" nation in the next 15 to 20 years, from its status as an "upper-middle income" country now, he said, Reuters reported.