World Bank lowered growth forecast for developing world to 4.8 percent
GEP report of World Bank has revised down the economic growth forecast of developing world in 2014 to 4.8 percent from 5.3 percent.
The World Bank on 11 June 2014 released Global Economic Prospects (GEP) report and revised down the economic growth forecast for developing world in 2014 to 4.8 percent from 5.3 percent estimated in January 2014. It also highlighted that the growth in 2015 and 2016 at 5.4 and 5.5 percent, respectively.
The forecast has highlighted that the developing nations are heading forward to third consecutive year of growth below 5 percent.
In its forecast, the World Bank also claimed that developing nations should make economic reforms to promote growth. Jim Yong Kim, the President of World Bank said that the forecasted growth rates are too modest to create jobs needed to improve the lives of the poorest 40 percent.
In context of India the report claimed that weakness will be due to subdued manufacturing activity and sharp slowing of investment in the country. Growth in India is projected at 5.5 percent in FY2014-15, accelerating to 6.3 percent in 2015-16 and 6.6 percent in 2016-17.
The release claimed that growth of China would be 7.6 percent in 2014 but it depends on the success of rebalancing efforts of the country.