The World Bank is anticipating a slowdown in the international economy after a period of recovery in 2010 following the recession.
Justin Len, an economist at the World Bank, said that a slowdown is expected after several countries implemented general incentives and measures to increase demand in 2010, in an attempt to pull their countries out of the 2008-2009 recession. Len told journalists at World Bank headquarters in Washington that the world economy has entered a new phase of recovery.
“We went beyond the revival stage and moved on to a more mature phase of growth,” he said.
The international economy will grow by an average of 3.3 percent this year and 3.6 percent next year, in comparison to 3.7 percent last year, according to World Bank estimates.
Rising economic forces and developing countries are leading the recovery and have reverted to the growth rates seen before the 2008 financial crisis. Len expected that developing countries will grow at a rate of about 6 percent this year and next, compared to 7 percent growth last year.
Len warned, however, of the consequences of the debts incurred by the EU and the rise in food prices and excessive investment. If left unaddressed, these problems could inhibit growth in less developed nations.
China’s economy grew by 10 percent last year while the greater Asia Pacific region grew 9.3 percent, surpassing all other regions in economic performance. This rate is expected to slow 8 percent this year.
Despite weathering the recession, wealthier countries are still not growing fast enough to bring down high unemployment rates. Advanced economies will grow at a rate of 2.4 percent in comparison to 2.8 percent last year, according to the World Bank.
