World Bank cut its global growth prospects for the eurozone

Advanced countries will grow by 1.4% and 5.4% emerging in 2012, which means a reduction of 1.3 points forecast and 0.8 points respectively.

Alert in his report on the danger of the crisis and reduced demand spread to emerging countries.

"The escalation of the crisis will leave no one unscathed," he says, recommending caution.

The World Bank (WB) on Tuesday revised downward the outlook for global growth to 2.5% by 2012 and 3.1 in 2013, dragged down by weakening the euro area and the slowdown in emerging economies, reported Tuesday multilateral organization.

The advanced countries will grow by 1.4% and emerging 5.4% in 2012, which means a reduction of 1.3 points and forecasts 0.8 points, respectively, as provided in the data provided the last year. In its latest estimates, in June 2011, the WB forecast the world economy by 3.6% for both years .

"The world economy has entered a difficult phase characterized by significant downside risks and fragility," the WB.

The great obstacle to the global economy is the situation in the euro area , where the financial uncertainty and the intensification of the fiscal crisis will enter a recession this year and is projected a negative growth of 0.3% for the European region.

However, the report notes that the recent measures taken in Europe, such as strengthening the Retirement Fund or progress toward fiscal unit in the euro area have reduced the pressure on the sovereign debt of countries like Greece, Italy, Spain or France.

Alert contagion to emerging

Nevertheless, the World Bank in its report warning about the danger of the crisis financial and demand reduction in the advanced economies are extended to the emerging countries , by ensuring the global economy could slip into a recession, "as or greater than that of 2008/09 ".

Therefore, the World Bank economists recommend to developing countries , in a scenario of declining capital flows and lower prices of raw materials, prepared with prudent macroeconomic policies.

The Bank recommends caution to emerging

" The escalation of the crisis will leave no one unscathed . growth rates in developed countries could drop as much or more than in 2008. We can not overemphasize the importance of contingency plans, "said Andrew Burns, head of the Department Macroeconomics and author of the report, told a telephone news.

Burns noted that capital flows to emerging countries has fallen by almost half in 2011 and that some of the engines of the global economy such as Russia, Brazil and India have slowed their growth as a result of domestic settings.

For the WB, the main risk is given because, unlike in the 2008 crisis, both advanced and emerging countries "have less fiscal space to provide a counter-cyclical response or to provide the same level of support troubled financial institutions. "

"Uncertainties and Vulnerabilities"

The report, entitled "Uncertainties and vulnerabilities," said the slow growth also affects international trade , with exports declining global following since 2010.

In 2010, world exports of goods and services grew 12.4%, but in 2011 recorded an increase of 6.6% and in 2012 is expected to make 4.7%.

Slow growth also affects international trade

Also, global prices of commodities have fallen 10.2% since the beginning of 2011 records and agricultural products 19%, which has direct implications for exporting countries, they can see their income reduced by about 4% of GDP.

The head of the Analysis Group of the World Bank, Hans Timmer , said that developing countries "should find advance funding for their budget deficits, prioritize spending on social safety nets and infrastructure stress testing and submit their banking institutions."

Finally, another factor that adds uncertainty to the global situation are political tensions in the Middle East that could disrupt international oil supplies, the report said.

On the positive side, the multilateral agency emphasizes the strengthening of growth in the U.S. and Japan since the intensification of the uncertainty in August 2011 but warned of challenges in both countries over the medium term because of high deficits and debt levels.