The World Bank revised its forecasts for global growth this year higher though it stressed it has concerns regarding rising interest rates and singled out the withdrawal of stimulus by the US Federal Reserve as a specific worry.
The organization now forecasts growth in global gross domestic product (GDP) to firm from 2.4% in 2013 to 3.2% this year. This compares to its June forecast of 3%.
Even so, the World Bank remained cautious. "Growth appears to be strengthening in both high-income and developing countries, but downside risks continue to threaten the global economic recovery," said group President Jim Yong Kim.
"Growth prospects remain vulnerable to headwinds from rising global interest rates and potential volatility in capital flows, as the US Federal Reserve Bank begins withdrawing its massive monetary stimulus," the World Bank specified in its report
The World Bank forecast developing country growth to rise above 5% in 2014, with some countries "doing considerably better", with Angola at 8%, China 7.7%, and India at 6.2%.
The organization now forecasts growth in global gross domestic product (GDP) to firm from 2.4% in 2013 to 3.2% this year. This compares to its June forecast of 3%.
Even so, the World Bank remained cautious. "Growth appears to be strengthening in both high-income and developing countries, but downside risks continue to threaten the global economic recovery," said group President Jim Yong Kim.
"Growth prospects remain vulnerable to headwinds from rising global interest rates and potential volatility in capital flows, as the US Federal Reserve Bank begins withdrawing its massive monetary stimulus," the World Bank specified in its report
The World Bank forecast developing country growth to rise above 5% in 2014, with some countries "doing considerably better", with Angola at 8%, China 7.7%, and India at 6.2%.
