Developing countries face scarce finance facility
KATHMANDU: The global economic recovery that is now underway will slow later this year as the impact of fiscal stimulus wanes.
Financial markets remain troubled and private sector demand lags amid high unemployment, according to a new report from the World Bank.
Global Economic Prospects 2010 warns that while the worst of the financial crisis may be over, the global recovery is fragile. It predicts that the fallout from the crisis will change the landscape for finance and growth over the next 10 years.
Global gross domectic product, which declined by 2.2 per cent in 2009, is expected to grow by 2.7 per cent this year and 3.2 per cent in 2011.
Prospects for developing countries are for a relatively robust recovery, growing by 5.2 per cent this year and 5.8 per cent in 2011 -- up from 1.2 per cent in 2009.
Gross domestic product (GDP) in rich countries, which declined by 3.3 per cent in 2009, is expected to increase much less quickly-by 1.8 per cent and 2.3 per cent in 2010 and 2011.
World trade volumes, which fell by a staggering 14.4 per cent in 2009, are projected to expand by 4.3 per cent and 6.2 per cent this year and in 2011, said the report published recently.