News / Economy

World Bank Says Global Economy at Turning Point

World Bank Says Global Economy at Turning Pointi
X
January 15, 2014 2:04 AM
The global recovery is gaining momentum according to new projections by the World Bank. But unlike previous years, the World Bank says growth in 2014 is likely to be driven in large part by high income countries. Mil Arcega has more.
TEXT SIZE - +
— The global recovery is gaining momentum according to new projections by the World Bank.  But unlike previous years, the World Bank says growth in 2014 is likely to be driven in large part by high income countries.
 
Five years after the financial crisis - the World Bank says the global economy has reached a turning point - this time, led by advanced economies.  That’s especially true of the United States, says Andrew Burns, lead author of the World Bank’s Global Economic Prospects. 
 
“For the first time in five years, high income countries are accelerating. They’re going to be contributing to global growth in a way that they haven’t for some time.  That’s going to be good for developing countries,” says Burns.
 
The World Bank projects the U.S. economy will expand from 1.8 percent last year to about 2.8 percent in 2014.  Bank chief economist Kaushik Basu expects a similar story in Europe which emerged from recession last year.
 
“The latest estimates show Europe grew by minus 0.4 percent, but we expect this to turn positive, gently positive - 1.1 is not huge growth but given Europe’s difficulties over the last six years, this is indeed good news,” says Basu.
 
Although political instability continues to pose downside risks for parts of North Africa and the Middle East, the biggest question mark remains the impact of the U.S. central bank’s decision to scale back monetary stimulus. 
 
But Basu says the effects are likely to be mild because many countries started feeling the impact of higher interest rates after the Fed signaled its intentions by the middle of 2013.
 
“We saw that in South Africa, in Indonesia, in India, where the exchange rate was crashing around.  So I feel actually, at one level, a lot of the adjustment has already taken place.  So when the tapering actually began as it now has from 85 billion dollars a month to 75 - it’s actually not having that much of an effect because part of the effect has already taken place,” says Basu.
 
Growth in China, still the world’s fastest growing economy, is expected to remain steady at 7.7 percent.
 
But Basu says he is most excited about prospects for the sub-Saharan regions of Africa - projected to grow 5.3 percent in 2014.

You May Like

Multimedia Anti-Keystone XL Protests Continue

Demonstrators are worried about pipeline's effect on climate change, their traditional way of life, health and safety More

Thailand's Political Power Struggle Continues

Court gave Prime Minister Yingluck Shinawatra until May 2 to prepare her defense over abuse of power charges but uncertainty remains over election timing More

Malaysia Plane Search Tests Limits of Ocean Mapping Technology

Expert tells VOA existing equipment’s maximum operating depth is around 6 kilometers as operation continues on ocean bed for any trace of MH370 More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Pet Kangaroo Helps Spread Environmental Messagei
X
Penelope Poulou
April 22, 2014 5:53 PM
Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pet Kangaroo Helps Spread Environmental Message

Children’s author Julia Heckathorn travels the world to learn about different ecosystems and endangered animals. She pours her knowledge into children’s books, hoping the next generation will right the environmental wrongs of our times. As in many children's books, the main character in Heckathorn's stories is an animal. Unlike those other characters, though, this one is real - a kangaroo, that lives in the author’s backyard. VOA’s Penelope Poulou has more.
Video

Video Pro-Russian Separatists Plan 'Federalization Referendum' in Eastern Ukraine

Pro-Russian separatists in eastern Ukraine say they plan to move forward next month with a referendum vote for greater autonomy, despite the Geneva agreement reached with Russia, the U.S. and Ukraine to end the political conflict. VOA's Brian Padden reports from the city of Donetsk in Eastern Ukraine.
Video

Video Pope Francis Hopes Dual Canonizations Will Reconcile Church

On April 27, two popes - John the XXIII and John Paul II - will be made saints in a ceremony at St. Peter’s Square. VOA religion correspondent Jerome Socolovsky says the dual canonization is part of the current pope’s program to reconcile liberals and conservatives in the Roman Catholic Church.
Video

Video In Capturing Nature's Majesty, Film Makes Case for Its Survival

French filmmaker Luc Jacquet won worldwide acclaim for his 2005 Academy Award-winning documentary "March of the Penguins". Now Jacquet is back with a new film that takes movie-goers deep into the heart of a tropical rainforest - not only to celebrate its grandeur, but to make the case for its survival. VOA's Rosanne Skirble reports.
Video

Video Boston Marathon Bittersweet for Many Runners

Monday's running of the Boston Marathon was bittersweet for many of the 36,000 participants as they finished the run that was interrupted by a double bombing last year. Many gathered along the route paid respect to the four people killed as a result of two bombings near the finish line. VOA's Carolyn Presutti returned to Boston this year to follow two runners, forever changed because of the crimes.
Video

Video International Students Learn Film Production in World's Movie Capital

Hollywood - which is part of Los Angeles - is the movie capital of the world, and many aspiring filmmakers go there in hopes of breaking into the movie business. Mike O'Sullivan reports that regional universities are also a magnet for students who hope to become producers or directors.
Video

Video Pacific Rim Trade Deal Proves Elusive

With the U.S.-led war in Iraq ended and American military involvement in Afghanistan winding down, President Barack Obama has sought to pivot the country's foreign policy focus towards Asia. One aspect of that pivot is the negotiation of a free-trade agreement among 12 Pacific Rim nations. But as Obama leaves this week on a trip to four Asian countries he has found it very difficult to complete the trade pact. VOA's Ken Bredemeier has more from Washington.
Video

Video Autistic Adults Face Housing, Job Challenges

Many parents of children with disabilities fear for the future of their adult child. It can be difficult to find services to help adults with disabilities - physical, mental or emotional - find work or live on their own. The mother of an autistic boy set up a foundation to advocate for the estimated 1.2 million American adults with autism, a developmental disorder that causes communication difficulties and often social difficulties. VOA's Faiza Elmasry reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.