• Thursday, June 13, 2024
businessday logo

BusinessDay

World Bank projects developing countries’ growth to edge up to 4.8%

World Bank projects developing countries’ growth to edge up to 4.8%

The World Bank Group increased its forecast for developing countries growth to 4.8 percent this year, compare to 4.4 percentage point it grew in 2014. This was stated in the World Bank Group Economic Prospects report released yesterday.

The group also projected that developing economies will strengthen to 5.3 and 5.4 in 2016 and 2017.

“Following another disappointing year in 2014, developing countries should see an uptick in growth this year, boosted in part by soft oil prices, a stronger U.S. economy, continued low global interest rates, and receding domestic headwinds in several large emerging markets,” says the report.

According to Jim Yong Kim, World Bank Group president, “In this uncertain economic environment, developing countries need to judiciously deploy their resources to support social programs with a laser-like focus on the poor and undertake structural reforms that invest in people.”

Read also:World Bank projects 3.1% economic growth for sub-Saharan Africa

“It’s also critical for countries to remove any unnecessary roadblocks for private sector investment. The private sector is by far the greatest source of jobs and that can lift hundreds of millions of people out of poverty,” he said.

The group also estimate’s the global economy to expand by 3 percent in 2015, 3.3 percent in 2016 and 3.2 percent in 2017.

The World Bank is the largest multilateral donor to Aid for Trade, and the active portfolio in trade-related assistance consists of $12.4bn in fiscal 2013, up from $2.8bn in 2003.

In its most recent edition of Global Economic Prospects released last week, the World Bank has flagged the rebuilding of fiscal buffers as a sustainable solution for current economic concerns bordering around weaker export prospects, an impending rise in global interest rates, and fragile financial market sentiments.