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.
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

Pundits Split Over Long-Term US Role in Afghanistan

Security pact remains condition for American presence beyond 2014; deadline criticized More

US Eyes Islamic State Threat

Officials warn that IS could pose a threat to US homeland More

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Moscow says Russian troops crossed into Ukrainian territory by mistake More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Scientists Unlock Mystery of Bird Flocksi
X
George Putic
August 25, 2014 4:00 PM
How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.
Video

Video Peace Returns to Ferguson as Community Tries to Heal

Thousands of people nationwide are expected to attend funeral services Monday in the U.S. Midwestern city of St. Louis, Missouri, for Michael Brown, the unarmed African-American teenager who was fatally shot by a white police officer August 9 in the St. Louis suburb of Ferguson. The shooting touched off days of violent demonstrations there, resulting in more than 100 arrests. VOA's Chris Simkins reports from Ferguson where the community is trying to move on after weeks of racial tension.
Video

Video Meeting in Minsk May Hinge on Putin Story

The presidents of Russia and Ukraine are expected to meet face-to-face Tuesday in Minsk, along with European leaders, for talks on the situation in Ukraine. Political analysts say the much welcomed dialogue could help bring an end to months of deadly clashes between pro-Russia separatists and Ukrainian forces in the country's southeast. But much depends on the actions of one man, Russian President Vladimir Putin. VOA's Daniel Schearf reports from Moscow.
Video

Video Artists Shun Russia's Profanity Law

Russia in July enacted a law threatening fines for publicly displayed profanity in media, films, literature, music and theater. The restriction, the toughest since the Soviet era, aims to protect the Russian language and culture and has been welcomed by those who say cursing is getting out of control. But many artists reject the move as a patronizing and ineffective act of censorship in line with a string of conservative morality laws. VOA's Daniel Schearf reports from Moscow.
Video

Video British Fighters on Frontline of ISIS Information War

Security services are racing to identify the Islamic State militant who beheaded U.S. journalist James Foley in Syria. The murderer spoke English on camera with a British accent. It’s estimated that several hundred British citizens are fighting for the Islamic State, also called ISIL or ISIS, alongside thousands of other foreign jihadists. Henry Ridgwell reports for VOA from the center of the investigation in London.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.