Delivering his first public speech since taking on his new role at the start of the month, Jim Yong Kim said even if Europe's sovereign debt problems are contained, they could still cut growth in most of the world's regions by as much as 1.5pc. However, if the crisis spins out of control, developing nations see their GDP fall 4pc or more, enough to trigger a deep global recession, he said.
"Such events threaten many of the recent achievements in the fight against poverty," Mr Kim said, noting that over the last decade nearly 30 developing countries' economies have grown by 6pc or more annually.
Outlining the challenges ahead for the World Bank, which is tasked with eradicating poverty through investment, Mr Kim said his priority was to protect development gains from economic risks, such as the eurozone crisis, which has begun to weigh on growth in large emerging economies such as China.
For now, the world's poorest nations appear to be somewhat insulated from the effects of Europe's crisis because they have limited exposure to global financial markets.
But Kim said not everyone would be spared and he urged European policymakers to take necessary steps to restore stability.
The Telegraph
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