World Bank cuts Global Growth estimates for 2013
World Bank sharply slashed the global growth outlook for 2013 to 2.4% from earlier estimate of 3%.
As per World Bank, major economies around the world are still facing hurdles towards recovery, despite improved conditions in financial markets. It also cut its forecast for developing countries, which last year grew at their slowest pace in a decade, to 5.5 % in 2013 from 5.9% in a June, 2012 forecast. The growth in these countries should slowly gather up, touching 5.7% in 2014 and 5.8% in 2015.
As per projections, growth in advanced economies should reach 1.3 % in 2013 dragged down by spending cuts, high unemployment and weak consumer and business confidence. It would touch 2% in 2014 and 2.3% in 2015.
The Bank called on the developing countries to focus on internal productivity-enhancing policies to give growth a fillip.