2.4% growth forecast for the world economy in 2013

2.4% growth forecast for the world economy in 2013

The World Bank said in its report “Global Economic Prospects” that the world’s gross domestic product grew by 2.3% in 2012, and is expected to increase the growth rate slightly to 2.4% this year. He added that growth will increase gradually to 3.1% in 2014 and 3.3% in 2015.

The bank saw that although the global economy is still fragile, the worst in the global financial crisis seems to be over. The bank added that the outlook for economic growth in developing countries is still strong but it will be slower at between 1 2 percentage points from the pre-crisis level.

Uneven growth

The bank predicted that the rate of growth among developing countries to 5.5% in 2013 and high-income countries to 1.3%. Should increase the growth rate to 5.7% and 5.8% in 2014 and 2015 respectively in developing countries and to 2% in 2014 and 2.3% by 2015 in high-income countries.

The bank also predicted that the return rate of growth in the euro zone to the positive trend in 2014. He pointed out that the GDP is expected to shrink by 0.1% in 2013 to end up to 0.9% in 2014 and 1.4% in 2015.

Emerging countries

Bank considered that emerging countries, led by China will remain the main engine of global growth in 2013 in the face of European countries and the United States, whose economy is still in the process of recovery. Kaushik Basu said the World Bank’s chief economist during a conference call: will be an interesting year, where we expect to move part of the leadership of international affairs to developing countries. China remains at the forefront of these countries.

Where he is expected to arrive in economic growth to 8.4% after indicators showed a slowdown in 2012 بهبوطه below the 8% threshold. As the World Bank expects economic recovery in Brazil (+3.4%) after weak growth last year (less than 1%, according to forecasts). The sub-Saharan Africa, will see a rebound “strong” this year (+4.6%), fueled by remittances from expatriates and strong domestic demand and high prices for raw materials, according to the World Bank.

Steadfastness striking

Said World Bank President Jim Yong Kim, according to a statement that developing countries have proven for the steadfastness of striking yet. But we can not wait until growth returns to the high-income countries.

He continued: We have to continue to support developing countries to invest in infrastructure, health and education. The report warned that it is not content to continue the strong growth in developing countries.

According to the report that in order to continue to achieve rapid growth, would have on developing countries to keep to push through reforms which formed the backdrop for the accelerated growth during the nineties and the first decade of the millennium. But the World Bank warned that these countries remain vulnerable to the deteriorating economic situation in the rich countries and is destined from the consequences at the level of the entire world, pointing to the euro zone.

Financial abyss

It is time for the United States to move from firefighting financial erupt one after the other to the discovery of materials non-flammable, which means structural reforms, so as not to back these fires break out in this frequency.

After successfully Washington to avoid “the abyss of financial” by reaching a last-minute agreement on the tax system, the country is facing now a new crisis on the debt ceiling threaten to cause Ptosrha pay dues, where required Representatives Republicans to start negotiations on the reduction of the budget deficit in order to raise the legal debt ceiling.

Which was rejected by U.S. President Barack Obama. The crisis was similar occurred in the summer of 2011 carried agency Standard & Poor’s credit rating to deprive the United States of its excellent “AA A”.