Developing nations 'leading GDP growth'
13th January 2011
A slowing in the growth of global gross domestic product (GDP) is expected to be seen in 2011, a new report from the World Bank has predicted.
The organisation's forecast claimed that global GDP growth will slip from 3.9 per cent in 2010 to 3.3 per cent this year, but added this will still be 'solid' performance.
According to the Global Economic Prospects 2011 report, GDP expansion of six per cent will be experienced by developing countries, after standing at seven per cent last year. However, the prediction is less favourable for developed nations, where GDP growth is tipped to slide from 2.8 per cent to just 2.4 per cent.
Justin Yifu Lin, chief economist and senior vice president for development economics at the World Bank, commented: 'On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions.'
A report published this week by the World Economic Forum argued that the financial crisis has increased the risk of worldwide economic and financial instability, but claimed global governance systems are not equipped with the resources to address this.