NEW YORK (dailynewyorknews) – The World Bank cut its 2012 growth forecast Wednesday, both emerging and developing its estimates of just six months, and warned the world about a new global recession could be as bad as the crisis makes four years.

He warned that the escalating crisis of sovereign debt in Europe, a new oil crisis, or a “hard landing” of one of the largest developing economies could trigger a global economic slowdown. The bank added that the risk of these events is the same bank reduced growth forecasts “very uncertain”.

A collapse of financial markets caused by the problems of European sovereign debt poses the greatest immediate risk, the report said.

“The escalation of the crisis will not forgive anyone,” said Andrew Burns, director of global macroeconomics and lead author of the report. “Developed and developing the country’s growth rate could fall even more than in 2008 and 2009.”

A real European crisis detract from April 1 percentage point to global growth, which could tip the world economy from a position of low growth in the recession.

But even if the crisis worsens in Europe and other impacts can be avoided, the World Bank predicts that the global economy will grow by 2.5%, against an estimated growth of 2.7% last year and 4.1% of growth in 2010.

The report indicates that the developed economies is expected to experience slow growth of 1.4%, below the previous estimate of 2.7% growth relatively strong.

Euro zone economies will shrink by 0.3% instead of rising by 1.8% as expected. Outside the euro area, the rest of the developed countries is expected to grow by 2.1%.

The World Bank, a multinational organization that provides financial assistance to developing countries, said emerging economies should grow at a rate of 5.4% this year, below its previous forecast of growth of 6.2%. Go to the top of the page.

Source: http://money.cnn.com/2012/01/18/news/economy/world_bank_recession/index.htm?iid=HP_LN&hpt=ibu_c1