World Bank cuts growth forecast for the global economy
- 15 January 2013
- From the section Business
The World Bank has cut its 2013 global growth outlook, blaming a slower-than-expected recovery in developed nations.
In its twice-yearly Global Economic Prospects report, the bank said it expected world growth to be 2.4% this year, down on the 3% forecast in June.
The bank also warned of the damage being done to confidence by the US budget battles in Washington.
Although financial markets are calmer than they were last year, it is not reflected in growth, the bank said.
"What we are seeing is a recovery we anticipated in June being pushed a little further back in time, beginning closer to the end of the first quarter and into the second quarter of 2013, rather than beginning a little earlier," said the bank in its report.
"You can keep markets calm for one or two years, but if this is not backed up with real growth you could get another round of financial risks coming in."
The bank forecasts growth in the US this year of 1.9%, but says this is based on US politicians in Washington making progress in budget talks.