Developing countries should take steps to plan for a global economic meltdown on a par with 2008-09 if the European sovereign debt crisis escalated, the World Bank warned them today in its latest economic forecasts.
Predicting significantly slower global growth in 2012 than it expected last summer even if the eurozone muddled through its crisis, World Bank economists said that if financial markets denied funds to eurozone economies, global growth would be about 4 percentage points lower than even these figures with poorer economies far from immune.
Andrew Burns, head of macroeconomics at the bank, told journalists in London: “Developing countries should hope for the best and prepare for the worst.”
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