Global economy in 'danger zone': World Bank

Last month, World Bank president Robert Zoellick had said that investors had lost confidence in the economic leadership of several countries, led by America's bitter Congress debate to raise its debt ceiling and avoid default.

In his second warning in two months, Zoellick again cautioned that the world economy is stepping into a "new danger zone", as growth slows and investor confidence weakens.

Speaking in Beijing, Mr Zoellick urged Europe and the United States to tackle their debt problems, and noted that near record-high food prices and volatile commodity markets are threatening the world's most vulnerable people.

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

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