RTTNews - Monday, the World Bank lowered its global GDP forecast for 2009. The world economy is now estimated to shrink 2.9% this year compared with a 1.7% decrease estimated in March. Meanwhile, the Washington-based lender expects developing economies to grow 1.2% this year, following a 5.9% growth in 2008.
When China and India are excluded, GDP in the remaining developing countries is projected to drop 1.6%, causing continued job losses and throwing more people into poverty.
Justin Lin, World Bank Chief Economist and Senior Vice President, Development Economics said, The need to restructure the banking system, combined with emerging limits to expansionary policies in high-income countries, will prevent a global rebound from gaining traction.
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