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Global economy to grow in 2014: World Bank

Posted on Jan 15 2014 | IANS

Washington, Jan 15 : The global economy is estimated to expand at 3.2 percent this year from 2.4 percent in 2013, with growth picking up in developing countries and high-income economies, the World Bank said.

But growth prospects remain vulnerable to US tapering, the global lender said in its semi-annual Global Economic Prospects report, Xinhua reported Tuesday.

The firming of growth in developing countries is being bolstered by an acceleration in high-income countries and continued strong growth in China, it said.

However, global growth outlook will be sensitive to headwinds from rising global interest rates and potential volatility in capital flows, as the US Federal Reserve begins withdrawing its massive monetary stimulus, the report noted.

Growth in developing countries will pick up from 4.8 percent in 2013 to a slower-than-expected 5.3 percent this year, reflecting a cooling off of the unsustainable turbo-charged pre-crisis growth.

For high-income economies, the drag on growth from fiscal consolidation and policy uncertainty will ease, helping to boost economic growth from 1.3 percent in 2013 to 2.2 percent this year.

Among them, the recovery is most advanced in the US, as it is projected to grow by 2.8 percent this year after expanding for ten quarters.

The Euro Area, after two years of contraction, is projected to grow by 1.1 percent this year board.

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