POWERED BY MOMENTUM MEDIA
Second GFC a genuine threat: World Bank
The World Bank has issued a dire outlook for the global economy, warning that the world could suffer a recession "as large or even larger than that of 2008-09".
In its Global Economic Prospects 2012 report, the World Bank said that sovereign debt crisis in the eurozone worsened considerably in August 2011.
"While [the eurozone crisis is] contained for the moment, the risk of a much broader freezing up of capital markets and a global crisis similar in magnitude to the Lehman crisis remains," said the report.
As a result, the World Bank has revised its global growth forecast for 2012 down to 2.5 per cent, and 3.1 per cent in 2013. This is down from June forecasts of 3.6 per cent growth for both 2012 and 2013.
Breaking the 2012 growth prediction down to regions, the developing world is expected to grow by 5.4 per cent and high-income countries are predicted to grow by 1.4 per cent. The eurozone will contract by 0.3 per cent, according to the report.
Emerging markets are not as well placed for a second global downturn as they were in 2008, warned World Bank director of development prospects Hans Timmer.
"Developing countries should pre-finance budget deficits, prioritise spending on social safety nets and infrastructure, and stress-test domestic banks," Timmer said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
