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Category: Global Economy Sub-category: World Economy
Document type: news
"The global economy is poised to grow 2.7% this year, but the recovery will be slow as the impact of fiscal stimulus wanes," the World Bank has mentioned in a report.
The Global Economic Prospects 2010 report which is released on Wednesday said that the recovery "that is now underway will slow later this year as the impact of fiscal stimulus wanes."
It is said that the global economy shrunk 2.2% in 2009.
"Financial markets remain troubled and private sector demand lags amid high unemployment. However, the economy is expected to grow 3.2% in 2011," Xinhua reported.
"Overall, these are challenging times," said Justin Lin, World Bank chief economist and senior vice president.
"The depth of the recession means that even though growth has returned, countries and individuals will continue to feel the pain of the crisis for years to come," he said.
Gross domestic product (GDP) -- the wide measure of overall economy -- for developing countries are for a relatively robust recovery, growing 5.2% this year and 5.8% in 2011 -- up from 1.2% in 2009.
The World Bank predicts China's economy to grow by 9% in 2010 and 2011.
Prospects in developed nations which declined by 3.3% in 2009, is expected to increase much less quickly -- by 1.8 and 2.3% in 2010 and 2011.
The US, world's biggest economy and the epicentre of the financial crisis that triggered the downturn, will see 2.5% growth in 2010 and 2.7% in 2011. The World Bank projected the US economy to shrink 2.5 in 2009.
World trade volumes, which has fell down by a staggering 14.4% in 2009, are projected to expand by 4.3 and 6.2% this year and in 2011, said the World Bank.
"Unfortunately, we cannot expect an overnight recovery from this deep and painful crisis, because it will take many years for economies and jobs to be rebuilt. The toll on the poor will be very real," said Lin, the World Bank's chief economist.
"The poorest countries, those that rely on grants or subsidised lending, may require an additional $35-50 billion in funding just to sustain pre-crisis social programmes," he said.
Source: Economic Times
