World Bank projects steady global growth

Washington, 13 Jan–(ANA)-The world economy is moving from a bounce-back phase of the recovery to slower but still solid growth this year and next, with developing countries contributing almost half of global growth, according to the World Bank’s latest Global Economic Prospects 2011. 

 The Bank estimates that global GDP, which expanded by 3.9% in 2010, will slow to 3.3% in 2011, before it reaches 3.6% in 2012. Developing countries are expected to grow 7% in 2010, 6% in 2011 and 6.1% in 2012. They will continue to outstrip growth in high-income countries, which is projected at 2.8% in 2010, 2.4% in 2011 and 2.7% in 2012. 

 In most developing countries, GDP has regained levels that would have 

prevailed had there been no boom-bust cycle. While steady growth is projected through 2012, the recovery in several economies in emerging Europe and Central Asia and in some high-income countries is tentative. Without corrective domestic policies, high household debt and unemployment, and weak housing and banking sectors are likely to mute the recovery, the bank said.