World Bank slashes growth forecast for developing countries

High-rise buildings in Tianjin, China. The World Bank revised its growth projection for China from 7.7 percent earlier this year to 7.6 percent. Photo by: Hugi Ólafsson / CC BY

Developing countries’ growth, previously projected at 5.3 percent by the World Bank, is now estimated at 4.8 percent for 2014. Excluding China and India, growth is at a much slower 2.9 percent — a figure that reflects the increasingly large role that the two economies play in their respective regions and among developing countries as a whole.

In the second issue of its semiannual report on global economic forecasts, the World Bank noted that this is the third year that developing countries’ growth could hit below 5 percent. While growth is expected to improve to 5.4 percent in 2015 and 5.5 percent in 2016, there remains a need for greater investment in domestic structural reforms, according to World Bank Group President Jim Yong Kim, as “growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 percent.”

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    Anna Patricia Valerio

    Anna Patricia Valerio is a Manila-based development analyst focusing on writing innovative, in-the-know content for senior executives in the international development community. Before joining Devex, Patricia wrote and edited business, technology and health stories for BusinessWorld, a Manila-based business newspaper.