The World Bank has released its latest Global Economic Prospects report, and its ramifications are being felt right across world markets. The Washington-based institution says the global economy will expand more slowly this year due to the deeper-than expected recession in Europe. Global GDP is forecast to expand about 2.2 percent in 2013, lower than its January forecast of 2.4 percent.
Global trade, after contracting for several months, is seen to be picking up. But, the expansion of 4 percent is well below pre global financial crisis levels, around 7.3 percent. Trade volumes growth has also eased, while growth in trade value is also expanding less quickly.
The World Bank today cut its outlook for developing countries, which last year grew at the slowest pace in a decade. Their GDP as a whole could reach around 5.1 percent in 2013, from a previous forecast of 5.5 percent.
In China, growth is also slowing as authorities seek to rebalance the economy. Breaking down the regions, Asia still means business.
The East Asia & Pacific region is expected to grow the fastest by 7.3 percent this year; while South Asia is following on the heel, at 5.2 percent.