Zoëlick, who is visiting China, warned that the rise in foodstuffs prices to record highs and basic goods’ market fluctuations expose the world’s poorest and most vulnerable persons to danger.
“The international economy ushers into a new danger phase in the autumn of this year. The international financial crunch in Europe has become a matter of sovereign debt crisis which entails hazardous ramifications for the monetary federation,” World Bank’s President quoted by the Bahrain News Agency.
“The United States of America shall have to control its debts and expenditures and reform its tax system in order to boost the private sector’s growth.”
“We live in a global economy; decisions in Europe, decisions in the USA and decisions in China affect all of us. China needs to build a harmonious, creative, high-income modern community,” he added.
“If China continues in its present track, by the year 2030, its economy will be equal to 15 times that of the current South Korean economy using market prices. It would be too difficult to understand how to accommodate such expansion under a model of growth that relies upon exports and investments.
“China must increase its local consumption and improve efficiency of its economy and narrow the gap between its urban and rural population,” he asserted while agreeing with other analysts on the current economic growth patterns of China.