World Bank doubles contraction forecast for global economy
The global economy will contract by about three percent this year according to the World Bank, a figure almost double their initial prediction of 1.75 percent.
“Financial markets seem to have broken the fall over past months but there are clear fragilities, and risks remain,” said World Bank president Robert Zoellick.
He urged more developed countries to provide assistance to emerging economies, which have been hardest hit by the ongoing economic contraction: “The developed economies seem to be contracting at a slower pace but the effects of the global economic downturn are rippling through the world and still very much hurting developing countries.”
Zoellick also warned that rising unemployment could lead to “destabilisation and even the return of risk of conflict”.