The Eurozone crisis, weak growth elsewhere and reduced ability of governments to respond may lead to rerun of 2008-09.
This article titled “World Bank warns of global recession” was written by Larry Elliott, economics editor, for The Guardian on Wednesday 18th January 2012 02.02 UTC
The World Bank has warned that the crisis in the eurozone will lead to a sharp slowdown in growth in rich and poor countries this year and could spiral into a rerun of the 2008-09 recession.
In its half-yearly health check on the global economy the Washington-based institution said the world had “entered a very difficult phase characterised by significant downside risks and fragility”. The bank lowered its forecast for global growth in 2012 from 3.4% to 2.5% but said governments should be preparing for a downturn as bad as that which followed the collapse of Lehman Brothers in 2008.