In its June 2011 edition of the Global Economic Prospects which was released today June 7, 2011, the World Bank said “developing countries need to focus on tackling country-specific challenges such as achieving balanced growth through structural reforms, coping with inflationary pressures, and dealing with high commodity prices.”
According to the Bank, on the contrary, prospects for high-income countries and many of Europe’s developing countries remain clouded by crisis-related problems such as high unemployment, household and banking-sector budget consolidation, and concerns over fiscal sustainability among other factors.
In the report, the World Bank projects that as developing countries reach full capacity, growth will slow from 7.3% in 2010 to around 6.3% each year from 2011 to 2013.
High-income countries, the Bank says will see growth slow from 2.7% in 2010 to 2.2 percent in 2011 before picking up to 2.7% and 2.6% in 2012 and 2013 respectively.
Justin Yifu Lin, the World Bank’s Chief Economist and Senior Vice President for Development Economics said “Globally, GDP is expected to grow 3.2% in 2011 before edging up to 3.6% in 2012,” adding, “but further increases in already high oil and food prices could significantly curb economic growth and hurt the poor.”
By Ekow Quandzie