Developing economies need robust blueprints to sustain growth: World Bank GEP 2014
Report urges developing countries to implement structural reforms to raise the economic capacities
World Bank has released the Global Economic Prospects 2014. Key highlight of the report are as follows:* World economy is showing signs of bouncing back this year
* Advanced economies are turning the corner
* Developing countries regain strength after two weak years
* US taper could throw curve balls, as global economy strengthens
* Growth prospects sensitive to the tapering of monetary stimulus in the United States and structural shifts taking place in China's economy.
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* Developing countries growth to pick up from 4.8% in 2013 to 5.3% this year, 5.5% in 2015 and 5.7% in 2016.
* Global GDP is projected to grow from 2.4% in 2013 to 3.2% this year, stabilizing at 3.4% and 3.5% in 2015 and 2016, respectively, with much of the initial acceleration reflecting a pick-up in high-income economies.
* For high-income countries, the drag on growth from fiscal consolidation and policy uncertainty will continue to ease, accelerating economic growth from 1.3% in 2013 to 2.2% this year, stabilizing at 2.4% for each of 2015 and 2016.
* Amongst high-income economies, the recovery is most advanced in the US, with GDP expanding for 10 quarters now. The US economy is projected to grow by 2.8% this year (from 1.8% in 2013), firming to 2.9 and 3.0% in 2015 and 2016, respectively.
* Growth in the Euro Area, after two years of contraction, is projected to be 1.1% this year, and 1.4 and 1.5% in 2015 and 2016, respectively.
* Report urges developing countries to implement structural reforms that would help raise the capacity of their economies, if they are to regain their pre-crisis growth rates. It outlines some measures that policymakers could implement to set in motion a virtuous cycle of stronger investment, including foreign investment, and output growth over the medium term.
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