World Bank report says global economic recovery will slow down

January 21st, 2010 - 2:38 pm ICT by BNO News  

BANGKOK (BNO NEWS) – The World Bank on Wednesday said the global economic recovery will slow down later this year as the impact of the fiscal stimulus diminishes, according to a new report.

Global Economic Prospects 2010, an annual World Bank flagship report, says global financial markets remain troubled and the private sector demand lags amid high unemployment rates. The report warned that, while the worst of the financial crisis may be over, the global recovery is fragile.

It predicts that the fallout from the crisis will change the landscape for finance and growth over the next ten years. The report estimated that an additional 64 million people would fall into extreme poverty in 2010.

Global GDP, which declined by 2.2 percent in 2009, is expected to grow 2.7 percent this year and 3.2 percent in 2011. Prospects for developing countries are in for a relatively robust recovery, growing 5.2 percent this year and 5.8 percent in 2011 – up from 1.2 percent in 2009. GDP in rich countries is expected to increase much less quickly.

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