Washington, 12 Janaury 2011

The world economy is moving from a post- crisis bounce-back phase of the recovery to slower but still solid growth this year and next, with developing countries contributing almost half of global growth, says the World Bank’s latest Global Economic Prospects 2011.

The World Bank estimates that global GDP, which expanded by 3.9% in 2010, will
slow to 3.3% in 2011, before it reaches 3.6% in 2012. Developing countries are
expected to grow 7% in 2010, 6% in 2011 and 6.1% in 2012. They will continue
to outstrip growth in high-income countries, which is projected at 2.8% in
2010, 2.4% in 2011 and 2.7% in 2012.

In most developing countries, GDP has regained levels that would have
prevailed had there been no boom-bust cycle. While steady growth is projected
through 2012, the recovery in several economies in emerging Europe and Central
Asia and in some high-income countries is tentative. Without corrective
domestic policies, high household debt and unemployment, and weak housing and
banking sectors are likely to mute the recovery.

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