Post date: Nov 23, 2010 4:34:5 PM
World Bank President Robert Zoellick says 'uncertainties' remain in world markets and European Union economic issues.
ST. PETERSBURG, RUSSIA (NOVEMBER 23, 2010) REUTERS - World Bank President Robert Zoellick said on Tuesday (November 23) he foresees 'uncertainties' in world economies in the coming year and discussed how he thinks the European powerhouses will react to weaker neighbours.
Zoellick stressed that the European Union must come up with a process to address severe problems within the Eurozone, like the current crisis in Ireland and past and potential developments in Greece, Spain and Portugal, to keep from pulling the currency down."I think the markets already know some of the weaker players, and again, I believe that in the short term, the European Union will stand by those players. I think the longer term issues are some ones that have been raised by the Germans and others, which is in the future, how are you going to deal with some of the creditors? Are they also going to be built in to the process?" Zoellick said.
Zoellick said that world powers should brace themselves for another year of slow recovery and the fallout that comes with it.
"I think in general what it suggests is that growth in Europe and the United States is likely to remain rather modest in this recovery. That means you are going to have unemployment and that means you are going to have tensions on potential protectionism and the social side," he said.
Zoellick said that many investors have turned to buying gold as an alternative to international currencies.
"People have to decide where they're going to put their money. The Dollar? Uncertainties. The Pound? The British government is taking courageous steps, but uncertainties. The Yen has appreciated, but long term growth prospects for Japan are uncertain," Zoellick said.
Zoellick was in St. Petersburg for the World Tiger Forum, which the bank sponsored, bringing together leaders from 13 nations with endangered tiger populations.