World Bank sees growth pick-up for developing countries

World-Bank

The World Bank on Tuesday (Jan 13) predicted a pick-up in economic growth for developing countries, spurred by falling oil prices and despite a slight slowdown in global engine China.

Developing countries’ growth in gross domestic product (GDP) – the broad measure of a country’s output of goods and services – was expected to hit an annual pace of 4.8 per cent in 2015, up from 4.4 per cent last year, and surge to 5.3 per cent in 2016, according to the bank’s latest forecasts.

“Following another disappointing year in 2014, developing countries should see an uptick in growth this year, boosted in part by soft oil prices, a stronger US economy, continued low global interest rates” and improvements in several large emerging-market economies, said the World Bank in a statement.

The update of its Global Economic Prospects report showed that momentum in the developing countries would like push growth in the global economy higher, to a moderate 3.0 per cent in 2015 from 2.6 per cent in 2014, despite persistent weakness in the eurozone and Japan.

For China, the leader of the emerging-market economies, “structural reforms, a gradual withdrawal of fiscal stimulus, and continued prudential measures to slow credit expansion will result in slowing growth to 6.9 per cent by 2017 from 7.4 per cent in 2014,” said the anti-poverty development bank.

The GDP of the world’s second-largest economy was projected to increase by 7.1 per cent this year and slow slightly to a rate of 7.0 per cent in 2016.

Another major emerging-market powerhouse, India, should be among the beneficiaries of the spectacular plunge in crude oil prices that have lost almost 60 per cent of their value since June. The Asian giant, which is a net importer of crude oil, should see GDP accelerate to 6.4 per cent this year from a 5.6 per cent rate last year.

Weak oil prices also were expected to help Brazil, Indonesia, South Africa and Turkey fight inflation and reduce their current-account deficits, a major source of vulnerabilities to risks in the global economy, the World Bank said.

“What is critical is for nations to use this window to usher in fiscal and structural reforms, which can boost long-run growth and inclusive development,” said Kaushik Basu, the World Bank’s chief economist and senior vice president, in the statement.

Oil-producing countries, meanwhile, have been dealt a blow by the price plunge. Russia, which also is the target of Western economic sanctions, was expected to suffer a 2.9 per cent economic contraction this year before crawling back into growth in 2016.

“In this uncertain economic environment, developing countries need to judiciously deploy their resources to support social programs with a laser-like focus on the poor and undertake structural reforms that invest in people,” said World Bank President Jim Yong Kim.

 

 

Source : Channel News Asia | January 14, 2015

Thomas D’Innocenzi

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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