World Bank: Developing countries will face a difficult period

World Bank: Developing countries will face a difficult period

Posted 12/06/2012 07:54 PM

WASHINGTON (Reuters) – The World Bank said on Tuesday that developing countries prepare for a long period of volatility of financial markets and weak growth with the increasing tensions over the euro zone debt crisis worsening.

The World Bank warned in a report that the situation in Europe has been getting worse and said that for developing countries to prepare for times more difficult by lowering short-term debt and reduce the budget deficit and the transition to monetary policy a more moderate so as to facilitate quickly if necessary.

Said Hans Timmer, director of development prospects at the World Bank, “the global capital markets and investor sentiment volatile in the medium term, making economic policy difficult.”

He added that policy makers in developing countries should “turn the fire to strengthen growth potential,” by focusing on the reforms and infrastructure investments, rather than the reaction to daily events in the global economy.

He expected the World Bank in the World Economic Outlook report slower growth in developing countries to 5.3 percent in 2012 from 6.1 percent last year. The bank said it expects accelerated growth thereafter to 5.9 percent in 2013 and six percent in 2014.

It forecast global economic growth slowing to 2.5 percent this year from 2.7 percent in the last year and then acceleration to three percent in 2013 and 3.3 percent in 2014, little changed from the bank forecast in January.
Source: altahreernews