World Bank chief economist Kaushik BasuThe World Bank has warned of the risk of the eurozone sliding into permanent stagnation and urged the European Central Bank to embark on a money-creation programme to boost growth. In its half-yearly health check on the global economy, the bank said there was a growing gulf in the west between the strong growth posted by the US and the UK and the weakness of the eurozone and Japan. The bank said the problems of the eurozone and Japan had forced it to revise down its global growth forecasts for 2014 and 2015. It stressed that ingrained structural defects could be the reason for the continued failure to recover to pre-recession growth rates. Kaushik Basu, the bank’s chief economist, said: “The global economy is still struggling to gain momentum as many high-income countries continue to grapple with the legacies of the global financial crisis and emerging economies are less dynamic than in the past.” More