World Bank tells EMs to brace for 2008-style slump

The World Bank has warned developing countries to prepare for the "real risk" of the deepening eurozone crisis tipping the world into a post-Lehmans style recession.

In a report in which the Bank also cut back its global growth expectations, it said Europe is probably already in recession and if the eurozone crisis were to deepen, its forecasts for the rest of the world be significantly lower, the Telegraph reports. "The sovereign debt crisis in the eurozone appears to be contained," Justin Lin, chief economist for the World Bank, told reporters in Beijing on Wednesday. "However, the risk of a global freezing-up of the markets and as well as a global crisis similar to what happened in September 2008 are real." The world economy will grow by 2.5...