World Bank Predicts Developing Countries To Cushion Rich-Country Slowdown In 2008; Interactive Prospects For The Global Economy Now Available
"Resilience in developing economies is cushioning the current slowdown in the United States, with real GDP growth for developing countries expected to ease to 7.1 percent in 2008, while high-income countries are predicted to grow by a modest 2.2 percent, says the World Bank.
Global Economic Prospects 2008 (GEP 2008) notes that world growth slowed modestly in 2007 to 3.6 percent compared with 3.9 percent in 2006, a downturn due largely to weaker growth in high-income countries. In 2008 global growth is expected to be 3.3 percent.
A weaker US dollar, the specter of an American recession and rising financial-market volatility could cast a shadow over this soft landing scenario for the global economy. These risks would cut export revenues and capital inflows for developing countries, and reduce the value of their dollar-investments abroad. In this context, the reserves and other buffers that developing countries have built up in past years may be needed to absorb unexpected shocks.
“Overall, we expect developing-country growth to moderate only somewhat over the next two years. However, a much sharper United States slowdown is a real risk that could weaken medium-term prospects in developing countries,” said Uri Dadush, Director of the World Bank’s Development Prospects Group and International Trade Department.
The report’s authors assume that credit turmoil in international markets will persist into late 2008, but that costs to large financial institutions will remain manageable. Moreover, they predict that spillover from problems in the US housing market on consumer demand will remain limited." ...
World Bank "Developing Countries To Cushion Rich-Country Slowdown In 2008" January 9, 2008
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Interactive prospects for the global economy can be found at: http://www.worldbank.org/globaloutlook.
The housing boom in Kyiv, Ukraine, Future European Union, is being driven both by high-rise luxury condominium towers and low-rise, more contextual, architecture.
[Click on image for enlargement.]
Photo credit: (c) Trey Ratcliff and stuckincustoms.com. All rights reserved. With thanks.
Global Economic Prospects 2008 (GEP 2008) notes that world growth slowed modestly in 2007 to 3.6 percent compared with 3.9 percent in 2006, a downturn due largely to weaker growth in high-income countries. In 2008 global growth is expected to be 3.3 percent.
A weaker US dollar, the specter of an American recession and rising financial-market volatility could cast a shadow over this soft landing scenario for the global economy. These risks would cut export revenues and capital inflows for developing countries, and reduce the value of their dollar-investments abroad. In this context, the reserves and other buffers that developing countries have built up in past years may be needed to absorb unexpected shocks.
“Overall, we expect developing-country growth to moderate only somewhat over the next two years. However, a much sharper United States slowdown is a real risk that could weaken medium-term prospects in developing countries,” said Uri Dadush, Director of the World Bank’s Development Prospects Group and International Trade Department.
The report’s authors assume that credit turmoil in international markets will persist into late 2008, but that costs to large financial institutions will remain manageable. Moreover, they predict that spillover from problems in the US housing market on consumer demand will remain limited." ...
World Bank "Developing Countries To Cushion Rich-Country Slowdown In 2008" January 9, 2008
*
Interactive prospects for the global economy can be found at: http://www.worldbank.org/globaloutlook.
The housing boom in Kyiv, Ukraine, Future European Union, is being driven both by high-rise luxury condominium towers and low-rise, more contextual, architecture.
[Click on image for enlargement.]
Photo credit: (c) Trey Ratcliff and stuckincustoms.com. All rights reserved. With thanks.
posted by Garth Trinkl at 9:16 AM
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