SUBSCRIBE TO OUR FREE NEWSLETTER
PUBLISHED |

World Bank says fiscal stimulus is not enough

World Bank says fiscal stimulus is not enough article image

President of the World Bank Robert Zoellick says fiscal stimulus plans won't turn the real economy around unless the credit system behind it revives as well. "While the stimulus has given an impulse, it's like a sugar-high unless you eventually get the credit system working," he said. He warned that unemployment had the potential to incite global political unrest, calling it possibly the "the most political combustible issue". Zoellick added they were looking into the private sector's involvement in the credit market: "The World Bank is monitoring private companies' abilities to roll over a lot of debt in the developing world." Some of his comments come despite inklings that stimuli in India and China have been working, with other analysts raising their outlooks for those two economies, those he admits China's stimulus had helped growth there.

Tags

Leave A Comment

Spinning icon Saving your comment, please wait...
Spinning icon Saving your comment, please wait...