Growth Slowing in Developing World

Apr 1st, 2009 5:52 PM UTC
By Chris Scott

Yesterday the World Bank released a report projecting a GDP slowdown in developing countries. The report projects growth at 2.1 percent in 2009—down considerably from 5.8 percent in 2008. This is less than half the World Bank’s November 2008 projection of 4.4 percent.

Excerpts below, full report here.
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Across the developing world, we see that conditions of recession are affecting the poorest people, making them even more vulnerable than before to sudden shocks—but also reducing opportunities available to them, and frustrating their hopes,” said Justin Yifu Lin, World Bank Chief Economist and Senior Vice President, Development Economics “This could reverse years of progress, and is nothing less than an emergency for development.”

In the update, the Bank emphasized that even though growth should rebound—albeit slowly—economic activity will remain depressed, with unemployment and significant sectoral adjustment persisting for the next two years.

“Even if global growth turns positive again in 2010, output levels will remain depressed, fiscal pressures will mount, and unemployment levels will rise further in virtually every country well into 2011,” explained Hans Timmer, Manager, Global Trends, in the World Bank’s Development Prospects Group.

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-Chris Scott

TAGS: Policy News, World Bank