Global Economic Prospects June 2010: Fiscal Headwinds and Recovery
June 10, 2010—Even as the world economic recovery continues to advance, it faces fresh headwinds on the road to sustainable medium term growth, cautions the World Bank’s latest Global Economic Prospects 2010. The report warns that while the impact of the European debt crisis has so far been contained, it has the real potential to derail global growth.
A prolonged period of rising high-income sovereign debt could make global borrowing more expensive for developing countries, curtail investment and growth, and ultimately result in more poverty. Developing countries with close trade and financial ties to highly-indebted high-income countries may feel serious ripple effects.