Speaking at the Asia Society's annual dinner in Sydney, he also said that the global economy was going through a "multi-speed recovery".
Developing countries were now the source of growth and opportunity, Mr Zoellick said.
In the past two weeks, global stock markets have suffered massive falls on fears about the state of leading economies.
The US had its AAA debt rating cut for the first time in its history by the rating agency Standard & Poor's, following a long and bitter row in Congress over a plan to raise the US debt ceiling to ensure the country avoided a default.
In Europe, rumours emerged that France would also have its top-notch rating downgraded, although this was widely denied, while Italy announced its second austerity plan in as many months. 'Fragilities of recovery'
"What's happened in the past couple of weeks is there is a convergence of some events in Europe and the United States that has led many market participants to lose confidence in economic leadership of some of the key countries," Mr Zoellick said.
"I think those events combined with some of the other fragilities in the nature of recovery have pushed us into a new danger zone. I don't say those words lightly."
He said he was making the point so that policy makers would take it seriously.
On the US, he said markets were not afraid that the world's biggest economy faced an imminent problem, but that they had got used to the US "playing a key role in the economic system and leadership".
The eurozone faced more serious problems, he said, with a lot of member states "moving from drama to trauma".
But he said Australia was in a much better position than other developed countries because of structural reforms it had already undertaken.
On China, he said the appreciation of the yuan would would help reduce inflationary pressures in the country.
Related Post:
economic
- IMF said asian economic growth forecast 2013
- Economic Events Next Week April 30-May 4 2012
- Vietnam forex reserves forecast 2012
- Business events and economic reports january 2012
- Financial Market and Economic News january 2-6 2012
- U.S. Economic and Housing Market Outlook November 2011
- Saudi-Spanish Center for Islamic Economics and Finance (SCIEF)
- what Ben Bernanke steps to stimulate a flagging economic recovery
- U.S. Europe economic outlook weekly september 19 2011
- portugal economic crisis effects 2011
stock info
- Global Markets news today august 30 2011
- Trading Game Is Causing the Manic Market
- Stock Market august 9 2011, waiting Federal Reserve Ben Bernanke Comment
- Cramer's Stock to Watch for Week august 8 2011
- stock market outlook 9 august 2011
- Greenspan predicted stock market drop after downgrade august 8 2011
- impact the technology sector has had on IPOs 2011
- factors which make stock markets panic, Analysts Forecast
- Stock market Summary ends week August 05, 2011, FTSE 100 Index, Japan's Nikkei 225 and Hong Kong's Hang Seng down
No comments:
Post a Comment