Global economy in new danger zone: World Bank

The world economy is entering a new “danger zone” with the recent financial market turbulence eroding investor confidence, according to Robert Zoellick, president, World Bank.

“It will be important that the primary economic actors take steps, both short and long term, to restore that,” Zoellick told reporters Sunday after addressing the Asia Society in Sydney, Australia.

Responding to a query on the present situation in Europe, he said that if the economic leadership fails to get ahead of the problem in its different dimensions, lack of confidence will lead it to spread to players that should otherwise be able to sustain their policies and get beyond the crisis.

If some of the countries such as Greece and Portugal are unable to show the prospects for growth, then the debt crisis is likely to persist, he added.

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