The global economy has started picking up, led by advanced economies, after five years of financial crisis and recession.The World Bank's twice yearly Global Economic Prospects report stipulates that the expected growth rate for the world is expected to increase. It was 2.4 percent in 2013. It is expected to grow to 3.2 percent this year and reach 3.4 percent in 2014.
The World Bank report has stated that large economies like the United States and Japan are building up strong momentum of economic growth. These economies should support developing countries also.
The risks to the global economy include:
The World Bank report has stated that large economies like the United States and Japan are building up strong momentum of economic growth. These economies should support developing countries also.
The risks to the global economy include:
- Vulnerability of interest rates
- Volatility in the capital market and fiscal uncertainty as the United States Federal Reserve eases up on the extraordinary stimulus that it has provided for the United States economy; the largest of its kind
- Protracted recovery in the euro zone
- Possible setbacks in China's restructuring policies.
The World Bank said that the Fed's decision to begin trimming its intervention in the market is welcome as this "reflects increasingly convincing signs that a self-sustaining recovery is under way". The world will be likely to see an increase in the Global economic growth rate in the near future.
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