World Bank warns developing countries of economic shocks
18 Jan 2012
The World Bank has sounded a warning to developing countries asking them to be prepared for shocks as global economic growth slowed.
Having cut its growth forecasts, the organisation is now predicting a 0.3 per cent contraction for the euro zone in 2012.
According to World Bank chief economist Justin Lifu Lin, developing countries needed to evaluate their vulnerabilities and prepare for further shocks, while there was still time.
The report's author warned that escalation of the crisis would spare no one.
Referring to the euro zone crisis and its potential to impact growth in rich and poor countries, Andrew Burns, manager of global macroeconomics at the World Bank, said:
"Developed and developing-country growth rates could fall by as much or more than in 2008-09….The importance of contingency planning cannot be stressed enough."
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