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

Mood Tense Ahead of Scotland Independence Vote

As race to persuade undecided voters continues, 'No' voters say they believe life in Scotland will slowly improve, 'Yes' vote not worth the risk More

South Africa’s 'Open Mosque' Admits Everyone, Including Critics

Open Mosque founder plans to welcome gay worshipers and allow women to lead prayers More

Ukrainian Activist in Despair About Future of Her Country

IrIna Dovgan, accused of being a spy and tortured by pro-Russian separatists, is appealing to UN Human Rights Council to support her country More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
A Dinosaur Fit for Land and Wateri
X
September 17, 2014 8:44 PM
Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.
Video

Video China Muslims Work to Change Perceptions After Knife Attacks

China says its has sentenced three men to death and one woman to life in prison for a deadly knife attack in March that left more than 30 dead and 140 injured. Beijing says Muslim militants from China's restive western region of Xinjiang carried out the attacks. Now, more than six months after the incident, residents in the city are still coping with the aftermath. VOA's Bill Ide has more from Kunming.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7718
JPY
USD
107.32
GBP
USD
0.6125
CAD
USD
1.0974
INR
USD
60.919

Rates may not be current.