In a report prepared for the upcoming G20 summit for Financial Markets on Nov. 15, the World Bank has cut its 2009 global growth forecast to 1.0% despite a previous forecast for 3.0% growth made in last June.
The document suggests a 4.5% growth rate in emerging economies, down from the previous 6.4%, and sees developed economies growing 0.1% in 2009 rather the 2.0% forecast.
The organization also predicts it will lend up to $35 billion in the 12 months to June 30, 2009 to middle-income nations and is prepared to commit up to $100 billion over the next three years.
"The global financial crisis, coming so soon after the food and fuel crises, is likely to hurt the poor most in developing countries," said World Bank Group President Robert B. Zoellick. "Working with the IMF, UN agencies, regional development banks and others, the World Bank Group is helping both governments and the private sector through lending, equity investments, innovative new tools, and safety net programs."
By Erik Kevin Franco and edited by Nancy Girgis
©CEP News Ltd. 2008