The world economy is entering a new phase of uncertainty

The world economy is entering a new phase of uncertainty and danger, said Justin Jifu Lin, chief economist of the World Bank.

"The risks of a capital market freeze as well as a global crisis similar to that of September 2008 are real," he said.

Lin said developing countries that have enjoyed relatively strong growth while the United States and Europe have struggled could be hit hard.

He said that governments should prepare in advance sources of financing to cover budget deficits, review the soundness of their banks and increase spending on social security programs.

Many governments are in a weaker position than they were during the 2008 crisis because their debts and budget deficits are higher, Lin said at a press conference in Beijing.

"In the event of a major crisis, no country will be spared. The downward spiral will probably be longer and deeper than last time," he said.

The World Bank warned in its twice-yearly "Global Economic Outlook" report that there could be a slowdown in global economic growth and called on developing countries to prepare for shocks that could be more severe than those during the crisis. in 2008.

China now contributes the most to global growth, representing almost 12 percent of the total world GDP

It predicts a recession for the 17 countries that use the euro, and has reduced the prospects for growth from 1,8 percent to minus 0,3 percent.

In its report, the World Bank also expressed concern about the European debt crisis and American unemployment.

The report follows similar warnings about the global economy from the International Monetary Fund and private sector analysts.

The United Nations states in its published report that China's economic growth, although it has slowed down, will have increasing importance for the global economy.

The UN predicts that China's economic growth will be 8,7 percent this year.

China's main economic indicators, released yesterday, showed that gross domestic product (GDP) slowed to 8,9 percent from 9,1 percent in the fourth quarter of last year, compared to the previous quarter, but those results were still better than analysts had expected. expected.

"The nearly nine percent growth in the world's second-largest economy is absolutely good news for a global economy teetering on the brink of recession," said Wang Tongsan, a senior researcher at the Chinese Academy of Social Sciences.

China is now the biggest contributor to global growth, according to a recently released report. China represents almost 12 percent of total world GDP, and more than one third of world GDP growth.

"When economic difficulties in several developed countries begin to drag down the world economy, China's contribution to world GDP growth is likely to increase," said another analyst, Zhu Baoliang.