The global economy is estimated to expand at 3.2 per cent this year from 2.4 per cent 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 on 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 per cent in 2013 to a slower-than-expected 5.3 per cent 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 per cent in 2013 to 2.2 per cent this year.
Among them, the recovery is most advanced in the US, as it is projected to grow by 2.8 per cent this year after expanding for ten quarters.
The Euro Area, after two years of contraction, is projected to grow by 1.1 per cent this year board.
Comments
0 comment