World Bank lowers projections for Global Economic Outlook

Developing countries are headed for a third consecutive year of disappointing growth below 5%, as first quarter weakness in 2014 has delayed an expected pick-up in economic activity, says the World Banks latest Global Economic Prospects report, issued on June 10, 2014.

In contrast, recovery in high-income countries is gaining momentum, despite first quarter weakness in the United States. These economies are expected to grow by 1.9 percent in 2014, accelerating to 2.4 percent in 2015 and 2.5 percent in 2016.

The Euro Area is on target to grow by 1.1 percent this year, while the United States economy, which contracted in the first quarter due to severe weather, is expected to grow by 2.1 percent this year (down from the previous forecast of 2.8 percent).

The global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8 percent this year, strengthening to 3.4 and 3.5 percent in 2015 and 2016, respectively. High-income economies will contribute about half of global growth in 2015 and 2016, compared with less than 40 percent in 2013.

The report includes detailed analysis of recent economic developments for each developing region, i.e. East Asia and Pacific; Europe and Central Asia; Latin America and the Caribbean; Middle East and North Africa; South Asia; and Sub-Saharan Africa. The analysis and outlook for each region, including country-specific forecasts, forms Chapter 2 of the report.