World Bank Forecasts Disappointing Growth for Developing Countries

BANGALORE: Developing countries are headed for a year of disappointing growth, the World Bank said in its Global Economic Prospects report, which has lowered its forecasts for developing countries to 4.8 percent growth rate this year from the January estimate of 5.3 percent. In its latest report, the Bank has lowered its forecasts for developing countries, now eying growth at 4.8 percent this year, down from its January estimate of 5.3 percent.

Signs point to strengthening in 2015 and 2016 to 5.4 and 5.5 percent, respectively. China is expected to grow by 7.6 percent this year, but this will depend on the success of rebalancing efforts. If a hard landing occurs, the reverberations across Asia would be widely felt, the Bank said. "Growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 percent," said World Bank Group President Jim Yong Kim.

"Clearly, countries need to move faster and invest more in domestic structural reforms to get broad-based economic growth to levels needed to end extreme poverty in our generation," Kim said. The global economy, it said, is expected to pick up speed as the year progresses and is projected to expand by 2.8 percent this year, strengthening to 3.4 and 3.5 percent in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016, compared with less than 40 percent in 2013, it added.

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