Global economy in danger zone: World Bank chief

The financial crisis in Europe has become a sovereign debt crisis,with serious implications for the Monetary Union,banks,and competitiveness of some countries, he said.

My country,the United States,must address the issues of debt,spending,tax reform to boost private sector growth,and a stalled trade policy.

Turning to China,where he is leading a World Bank study on how the nation can improve its economic growth model,Zoellick was upbeat.

China is well positioned to become a high-income nation in the next 15 to 20 years,from its status as an upper-middle income country now,he said.

The question is whether China can avoid the middle income trap,where national productivity and income growth stalls after per capita income hits 3,000 to 6,000,Zoellick said.

If China were to continue on its current growth path,by 2030 it would have an economy equivalent to 15 of todays South Koreas,using market prices, he said.