MercoPress. South Atlantic News Agency

World Bank official warns on soaring number of poor in 09

World Bank Managing Director for Latam, Juan Jose Daboud,

The world financial crisis influenced by the high prices of food and fuel will cause global growth to drop 1 to 2%, together “with the emergence of millions of poor, a new underclass”, according to a top official from the World Bank.

Financial turbulence intensified last September following the sub prime and housing crisis in the US, which had a domino effect on the whole global financial system. "Because of what is happening with food, fuel and the financial situation we expect growth in 2009 to contract 1 to 2%", said the World Bank Managing Director for Latinamerica, Juan Jose Daboud, following a meeting with Peruvian president Alan García in the capital Lima. "Each percentage point drop in economic growth, we have an extra 20 million new poor worldwide", said Mr. Daboud currently in Peru for the coming Finance ministers summit in the framework of the Asia Pacific Economic Forum, APEC, which is meeting in Peru Wednesday/Thursday. The IMF also recently downed its growth forecast for the world economy next year to 3%, the lowest in seven years, following a July estimate of 3.9%. It also warned that recovery is going to be particularly slow. The IMF expansion forecast for this year is 3.9%, below the 4.1% estimate of the previous July. "It's essential to have a steady hand on the helm, so that after the storm, when some countries will come out soaked and others with a few drops, they can be ready at the starting line to take advantage of recovery when it arrives", said Daboud