LONDON, Oct 24 (Reuters) - Geopolitical tensions heightened by the Middle East conflict pose the biggest threat to the world economy right now but other risks are also at play, World Bank President Ajay Banga said on Tuesday.
So yes, that is right there lurking in the shadows," Banga said, referring to a rise in the benchmark for borrowing costs around the world which further threaten an economic slowdown.
Banga said that while everything in the developed world looks better than had been expected some time ago, "I think that we're at a very dangerous juncture."
He said private sector investment is needed in developing economies but political risks in some of these countries remain a barrier.
There is not enough money in government coffers or even in the multilateral development banks, we need to involve the private sector with their capital," he said.
Persons:
Ajay Banga, Banga, Jorgelina, Karin Strohecker, Mike Harrison, Susan Fenton
Organizations:
World, Treasury, Future Investment Initiative, Thomson
Locations:
Riyadh, Israel, Gaza, Rosario