Global GDP expected to expand by 2.2pc this year: World Bank report
THE World Bank in its newly-released Global Economic Prospects (GEP) report says risks from advanced economies have eased and growth is firming, despite ongoing contraction in the Eurozone.
But the pick-up in developing countries will be modest because of capacity constraints in several middle income countries and global GDP is expected to expand about 2.2 per cent this year and strengthen to 3 per cent and 3.3 per cent in 2014 and 2015.
Developing countries' GDP growth is now projected to be around 5.1 per cent in 2013, strengthening to 5.6 per cent and 5.7 per cent in 2014 and 2015, respectively.
Growth in Brazil, India, Russia, South Africa and Turkey has been held back by supply bottlenecks. While external risks have eased, growth in these countries is unlikely to reach pre-crisis rates unless supply-side reforms are completed. In China also, growth has slowed as authorities seek to rebalance the economy.
Looking at broader regional trends, the East Asia-Pacific region is expected to grow by 7.3 per cent this year, Europe-Central Asia by 2.8 per cent, Latin America and the Caribbean by 3.3 per cent, Mideast-North Africa by 2.5 per cent, South Asia by 5.2 per cent, and Sub-Saharan Africa by 4.9 per cent.
THE World Bank in its newly-released Global Economic Prospects (GEP) report says risks from advanced economies have eased and growth is firming, despite ongoing contraction in the Eurozone.
But the pick-up in developing countries will be modest because of capacity constraints in several middle income countries and global GDP is expected to expand about 2.2 per cent this year and strengthen to 3 per cent and 3.3 per cent in 2014 and 2015.
Developing countries' GDP growth is now projected to be around 5.1 per cent in 2013, strengthening to 5.6 per cent and 5.7 per cent in 2014 and 2015, respectively.
Growth in Brazil, India, Russia, South Africa and Turkey has been held back by supply bottlenecks. While external risks have eased, growth in these countries is unlikely to reach pre-crisis rates unless supply-side reforms are completed. In China also, growth has slowed as authorities seek to rebalance the economy.
Looking at broader regional trends, the East Asia-Pacific region is expected to grow by 7.3 per cent this year, Europe-Central Asia by 2.8 per cent, Latin America and the Caribbean by 3.3 per cent, Mideast-North Africa by 2.5 per cent, South Asia by 5.2 per cent, and Sub-Saharan Africa by 4.9 per cent.