The World Bank has cut its growth forecast for the global economy, as tension in the Ukraine and political strife in Turkey weighs.
Disappointing economic activity
The financial institution’s president, Jim Yong Kim, expressed disappointment at the prospect of a third consecutive year of below 5% growth in the developing world.
He said recent growth rate are “far too modest to create the kind of jobs we need to improve the lives of the poorest 40 per cent.”
President Kim said the developing countries would expand at only 4.8% compared with a predicted 5.3%.
After a sluggish start to 2014, the Bank expects growth to accelerate in these countries in 2015.
Not enough growth
Meanwhile, a senior economist admitted that a three consecutive years of low performance raises concerns whether the developing world would become stronger.
“It’s one thing to have one year where one-off factors explain why growth wasn’t quite as strong as you anticipated. To have three years in a row where growth disappoints does have to start begging exactly those kinds of questions,” said Andrew Burn in a statement.