President of World bank Robert Zoellick stated on Wednesday over the danger which is faced by more economies. The countries like Europe,Japan and United States are under danger zone and now in pressure to take hard decisions. The hard decisions when taken by these economies will help to avoid dragging into the global economy stated Robert. These words were been spoke by Robert Zoellick during a speech on Wednesday at the George Washington University.
Ahead of the meetings of World Bank and International monetary fund he told that these countries were taking too long to make decisions. There was raising fears among the global policy holders over the debt crisis raising in Europe and has overshadowed the investor. The investors have now concerned about the public finances and reforms which are happening in US and Japan. Some countries like China are the global stakeholder and is one of the economic power which is rising and must take up the responsibly .
There were some meetings which will be held at the global finance and development leaders in Washington during the next week. During the meeting the main focus will be on the debt woes and the debt default of Greek which is an increasing alarm in financial market. European leaders have been giving mixed signals over the concerns of the 17 member euro zone which will be tackle the crisis. The difficult truths have been resisted by the European countries over the common responsibilities while Japan has held off the reforms.
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It would cost over 200 billion dollars for Germany , say experts. That is a huge amount for bailing out Greece once again, but Germany might better do that rather than face the monstrous consequences of a Greece fallout.
In Greece declares bankruptcy , it would be the German banks that would be hit and there could be more German exports at stake to the disturbed PIGS countries than any other country in the world.
So expect Germany to continue to fork out few hundred billion dollars more for bailing out Portugal / Spain and Ireland in the coming months or weeks.
Only when Germany sees a decline in the overall exposure to these countries in terms of credit and also in terms of exports, it would be ready for a show down. Till then Germany does not seem to have a choice.
Rhetorics do not stand the test once again.
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While US and Europe are talking of a recession ahead , India is showing a massive 81% rise in exports coupled with a healthy 40+ % growth in imports. High exports indicate that Indian products have become more competitive and are slowly and steadily eating in to some other exporting country’s share.
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