President: The world will again plunge into escalation of tensions and military build-up

"The situation in the world continues to hold many countries in suspense. We must be ready for the fact that in the medium term economic growth will be significantly weakened. Along with echoes raging global financial crisis and social tensions in the eurozone and social disruptions in the Arab world, we face new challenges", said the President, speaking at a panel meeting of the II World Anti-Crisis Conference and VII Astana Economic Forum. "Firstly, on the background of developed countries' recovery there is a general decline in the competitiveness of emerging economies. Experts predict increased capital flows which, in a negative scenario, could lead to a reduction of investment in developing countries by 50 % or more. Secondly, income inequality is steadily growing. Thirdly, on the background of social tensions the number of economic, social and political conflicts is rapidly increasing. These conflicts may escalate into military operations and introduction of real economic sanctions", said Nursultan Nazarbayev. He emphasized that the world will again plunge into escalation of tensions and military build-up.