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World Bank Cuts Global Growth Forecasts

The logo on the World Bank's headquarters in Washington.
The World Bank is predicting a global economic slowdown because of a recession in Europe and weaker growth in developing countries.

In its annual report for 2012, the bank says "Europe appears to have entered recession,” and growth in several major developing countries -- Brazil, India and to a lesser extent Russia, South Africa and Turkey -- has also slowed.

As a result, the bank says, it has substantially cut its forecasts for growth in both developed and poorer nations.

It now projects that the global economy will expand 2.5 percent this year, and 3.1 percent in 2013. That's down from a June forecast of 3.6 percent growth for both years.

The report says the economies of developing countries will continue to grow faster than the economies of richer, developed countries. But the bank has also lowered its forecasts for growth in these countries to 5.4 percent in 2012, and six percent in 2013.

compiled from agency reports

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