Europe faces slower recovery as World Bank cuts global outlook
The World Bank has predicted global GBP growth of 2.2pc this year, lower than its 2.4pc forecast back in January.
In the bi-annual Global Economic Prospects report from the bank, lead author Andrew Burns defines the current growth stagnation as the “new normal” following the financial downturn, as previously prosperous developed countries, such as those struggling in the Eurozone – fail to drive the world’s economy.
Emerging markets received a similarly sobering forecast as the BRIC (Brazil, India, Russia and China) countries recently experienced unforeseen growth slowdowns. Although, the bank expects these regions to improve over the next two years, its January predictions of 5.5pc have been reduced to 5.1pc.
The recent warnings highlight the danger of relying on the boom of developing nations to carry the world economy while recession-hit countries continue to focus on structural reforms and stringent financial policies.
On a positive note, however, the report notes that while sluggish growth is set to persist for the coming months and years, economic volatility will continue to decline as the risk stemming from the Eurozone fallout decreases.