The agony in the market seemingly is failing to subside with continued efforts by all parties to through more gas as the raging fire! The European debt crisis was the main pillar for the bearish break in markets which was extended in May and as we enter June the trend does not seem to have found the detour.
Markets fear the effect of the crisis on the global economic recovery, and the World Bank pessimistically assured that today. They said today that they expect some European economic to suffer the economic slowdown if the debt crisis was not controlled which is directly threatening countries in Central Asia to Latin America.
According to a press briefing telecast from Washington today, Andrew Burn, the World Bank's manager of global macroeconomics said we're expecting that growth in the second quarter is also likely to be disappointing, quite possibly seeing negative growth in several European countries and a double dip in some of these economies.
He highlighted the need to implement prudent fiscal policies to assure the sound recovery and contain the damage. The risk to the global economic outlook has which was reflected in the market as investors continued to lose faith and confidence in the market, which might enlarge the problem further on signs of credit seizures and renewed financial distress.
Burns said that the economies most at risk from the debt crisis are those in Eastern Europe, Central Asia, Latin America and the Caribbean though he did not say the countries likely to fall into a double dip recession.