World Bank releases 2008 Global Economic Prospects
Written by admin on Wednesday, January 9th, 2008 in World Economies, World Markets.
The World Bank released its Global Economic Prospects report for 2008 today, in which it predicts 2008 will be a year that developing countries will play a crucial role in preventing global markets suffering heavy landings as they suffer slowing economic growth at a time when the credit crunch continues to hit world economies.
In the report the World Bank has stated that the resilience in developing economies such as China and India will help to soften the impact of the current economic slowdown, and lead world markets in terms of growth in 2008.
The report from the World Bank was reiterated by Lord Jones who has encouraged medium sized British firms to actively look for opportunities in these high growth markets.
The prediction of a weakened landing however could be threatened by a continued weakened dollar and increasing volatility in world markets.
‘External demand for the products of developing countries could weaken much more sharply and commodity prices could decline if the faltering US housing market or further financial turmoil were to push the United States into a recession,’ World Bank
2008 growth predictions
The report outlines that slowed world economic will slow to 3.3% in 2008, from 3.6% in 2007. The growth of developing countries however is projected at 7.1% for 2008. US specific growth is tipped to slower even more to 1% in the first half of 2008, whilst China is tipped to record more than 10% growth.
‘strong spending by oil-exporting countries and firm expansion in China and India will keep developing country growth at 7% or more this year and next.’ World Bank