World Bank

Washington – The World Bank on Tuesday lowered its projection for the global economic outlook this year, as developing countries are heading for disappointing growth, while high-income countries are gaining momentum.

World Bank lowers projection for global economy

The Washington-based bank forecasts the global economy to grow 2.8% this year, down from its January estimate of 3.2%, according to its twice-yearly Global Economic Prospects report.

“Developing countries are headed for a year of disappointing growth, as first quarter weakness in 2014 has delayed an expected pick-up in economic activity,” the report noted.

Bad weather in the United States, the crisis in Ukraine, rebalancing in China and political strife in several middle-income economies slowed progress on structural reform, it said.

The bank has lowered its forecasts for developing countries to a growth of 4.8% this year, down from its January estimate of 5.3%. It is a third straight year of below 5% growth for the developing countries. Growth will pick up to 5.4% in 2015 and 5.5 % in 2016.

China is expected to grow 7.6% this year, slightly down from its January estimate of 7.7%, but this will depend on the success of rebalancing efforts, the bank said.

Despite first quarter weakness in the United States, the recovery in high-income countries is gaining momentum, the bank said, estimating that these economies will grow 1.9% in 2014, and will accelerate to 2.4% in 2015 and 2.5% in 2016. –