The world economy is stepping into a "new danger zone," World Bank President Robert Zoellick said , as growth slows and investor confidence weakens.
"The financial crisis in Europe has become a sovereign debt crisis, with serious implications for the Monetary Union, banks, and competitiveness of some countries," he said.
China is the world's second-largest economy, its per capita gross national income stands at just USD 4,260, World Bank data showed, less than a tenth of the USD 47,140 seen in the United States.
For Chinese consumption to take off, analysts say China needs to cut income taxes, improve healthcare services and labour mobility, and reduce Beijing's share of national income by raising dividend payouts from state firms, among other measures.
