World Bank slashes growth projection as global recession deepens
Washington - The World Bank on Thursday predicted a deepening global recession that has now caused a slump in growth in poor countries that can least afford it.
The global economy will shrink 3 per cent this year, the World Bank said, revising its estimate earlier this year of a 1.75-per-cent contraction.
While the recession began in wealthy economies, most developing countries will also see their economies contract this year as the financial crisis has spread to all corners of the globe.
Poor nations also face a budget shortfall of between 350 billion dollars to 635 billions dollars as private investors pull out their funds, the World Bank said.
Although growth is expected to revive during the course of 2010, the pace of the recovery is uncertain and the poor in many developing countries will continue to be buffeted by the aftershocks," World Bank President Robert Zoellick said in statement.(dpa)