The world economy is moving from a post-crisis bounce-back phase of the recovery to slower but still solid growth this year and next, with developing countries contributing almost half of global growth. This is according to the World Bank’s latest Global Economic Prospects 2011, a twice-yearly report examines growth trends for the global economy and how they affect developing countries.
This report explores the short-, medium, and long-term outlook for the global economy and the implications for developing countries and poverty reduction. Each year the Report focuses on the long-term analysis of issues that are central to development and poverty reduction, including trade, regionalism, migration and remittances, climate change, and technological innovation and their impact on developing countries.
According to this latest report, most of the developing world has weathered the financial crisis well, and, by the end of 2010, many emerging market economies had recovered or were close to resuming the growth potential they had attained prior to the crisis.
"On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions," said Justin Yifu Lin, the World Bank’s chief economist and senior vice president for development economics.
Developing country growth of 7% in 2010, and 6% in 2011 is projected, which is more than twice the rate projected for high-income countries.
Most low-income countries saw trade gains in 2010 and, overall, their GDP rose 5.3% in 2010. This was supported by a pick-up in commodity prices, and to a lesser extent in remittances and tourism. Their prospects are projected to strengthen even more, with growth of 6.5% in both 2011 and 2012, respectively.
For a detailed analysis on global and regional growth and other macroeconomic topics, access the full report and data at www.worldbank.org/globaloutlook.
Join the online chat with Andrew Burns
Andrew Burns, World Bank Manager of the Global Macroeconomic Trends Team of the Development Prospects Group, will conduct a live, online chat about the global economic outlook, January 26, 2011 at 10:00 am EST. Burns is lead author and task manager of Global Economic Prospects 2011, a recently released Bank report that examines trends in the global economy and how they affect developing countries. If you would like to submit a question, please visit: blogs.worldbank.org/meetings/discuss/online-qa-global-economic-prospects-2011
Download GEP 2011 Report: www.worldbank.org/gep2011