World Bank chief warns on growth crisis.
He added, "The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the monetary union, banks, and competitiveness of some countries."
Zoellick also urged China to speed up the reform of its economy. "If China were to continue on its current growth path, by 2030 it would have an economy equivalent to 15 of today's South Koreas, using market prices. It's hard to see how that expansion could be accommodated with an export and investment-led growth model. China's structural challenges occur in a current international context of slowing growth and weakening confidence."
Critics have long argued that China is too reliant on government investment and exports to fuel growth, instead of stimulating domestic consumption.
2011 CPI Financial. All rights reserved.
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