World Bank chief says global economy in danger, China must hasten reforms

World Bank Chief Robert Zoellick has asked the Chinese government to hasten planned structural reforms to shift the focus of its export-driven economy toward domestic consumption-led growth as the global economy entered a "new danger zone" this autumn.

"The bigger challenge for China in the autumn is if events (in the global economy) lead to a deeper downturn that affects demand for China's exports," Zoellick, currently touring China, was quoted by state-run China Daily as saying.

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"China needs to be thinking about the structural basis for future growth. The world economy is entering a new danger zone this autumn. China's structural challenges occur in the current international context of slowing growth and weakening confidence," he told a conference in Beijing.

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He said global economic indicators make for a bleak reading.

A monthly report by the European Commission showed that business and consumer confidence in the euro zone for August slid to its lowest level since May 2010.

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A report by the White House also predicted that US GDP growth will remain between 1.7 per cent and 2.1 per cent in 2011. Earlier predictions had put it at 2.7 per cent.

The report also said that the unemployment rate would stand at 8.8 per cent to 9.1 per cent this year in the US.

Zoellick started a five-day visit on September 1, his fifth since he assumed office in July, 2007.