Zoellick: Global Trade To Decline For 1st Time In 27 Yrs
According to Zoellick, the onset of the credit crunch has already caused a "stunning" decline in global trade that will spill over into 2009.
Speaking at a briefing during the Group of 20 meeting of finance ministers and central bankers in Sao Paulo, he noted that the global credit crunch caused a big gap in trade finance.
"The World Bank will expand its trade finance facility by $1.5 billion to help offset the gap," Zoellick said.
Developing countries will play a critical role in the resolution of the on going financial crisis.
Zoellick said that reforms in the global financial system, including greater regulation and oversight, will be implemented over the next two years.
However, the price of greater financial regulation will be the loss of jobs.
"The adjustment process will mean a loss of jobs in a lot of countries," he said.
-By Jeff Fick and Alastair Stewart, Dow Jones Newswires; 55-11-8147-0569; Brazil@dowjones.com
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(END) Dow Jones Newswires
November 08, 2008 16:37 ET (21:37 GMT)
Publié le 08 novembre 2008 Copyright © 2008 Dowjones
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