The crisis can be worse than in 2008

The World Bank warned yesterday to the developing countries of development to prepare for a crisis which could be more severe than the year 2008. At the same time, considered that there will be a possible slowdown of the economy in the whole planet.

The bank reduced its forecast for growth in underdeveloped countries for this year to 5.4% of the 6.2% and for developed countries to 1.4% of the 2.7%. For the 17 countries of the eurozone forecast a contraction, rising from 1.8% - 0.3%.

Global growth could leave injured with a recession in Europe and the slowdown in Brazil, the India and other Nations in developing, according to the entity with headquarters in Washington. He added that the situation could worsen if more European countries can not raise funds in financial markets. "The global economy is entering a new phase of uncertainty and risk", according to the Chief Economist of the World Bank, Justin Yifu Lin. "The risk of" u000a"a global freeze on capital markets and a crisis similar to the September 2008 are real".

Underdeveloped countries have enjoyed a relatively solid growth while United States and Europe, with an almost non-existent growth, could leave deeply affected, said Lin.

Added that they should increase their reserves in advance to cover possible budgetary deficit, review the financial health of banks and highlight social costs. Many Governments are in a much weaker financial position in the global crisis of 2008 have grown their budget deficits and sovereign debts, said Lin at a press conference

In the event of a crisis of far-reaching, "no country will emerge unscathed", said Lind. "The contraction will surely be more prolonged and deeper than the previous".

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The report EMPEORA the PANORAMA SOMBER
the outcome of the World Bank in u000aits half-yearly report "Global economic prospects" already worsened the prevailing bleak picture for the debt of the sovereign crisis in Europe and the high unemployment in United States.

"Probably the majority of the countries of Europe, Germany, entered a recession in the fourth quarter of last year", said Hans Timmer, director of the World Bank development projects. Investors reduced their contributions to developing countries by 45% in the second half of last year, against the same period in 2010, said Timmer. The report followed similar warnings issued by its twin organization, the International Monetary Fund and the private sector forecasts. For United States, WB reduced growth prospects this year from 2.9% to 2.2% and 2013 2.4 per cent of 2.7%, especially due to political differences in Washington about taxes and duties. United States already suffer the crisis in Europe.

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