The World Bank has forecast that global GDP growth will be 2.5 percent in 2008 and 0.9 percent in 2009. In a report released on Tuesday, the World Bank said the global financial crisis had dimmed short-term economic prospects around the world. It also said a sharp slowdown in developing countries as well as a recession in developed countries was inevitable.
According to the Global Economic Prospects 2009 report, the global financial crisis will negatively impact short-term prospects for developing countries. It's predicted that developing countries will likely grow by 4.5 percent next year. But growth in high-income countries will turn negative.
Meanwhile, world trade volumes will likely contract for the first time since 1982 due to the economic slowdown. Developing countries are also expected to see a big drop in their exports. Meanwhile, tighter credit conditions and increased uncertainty are expected to trim investment growth in both developing and high-income countries.
Meanwhile, the sharp slowdown has caused commodity prices to plummet, ending a historic five-year boom. But food and fuel prices in developing countries still remain high, compared to the 1990s.
The report projected ample global food supply. But it warned that food production in countries with fast growing populations -- notably in Africa -- may not be able to keep pace with demand.
The report recommends several measures to reduce the chances of another food price crisis. They include discouraging export bans, providing stable funding for food-aid agencies and improving coordination and information about global food stocks.
(CCTV December 10, 2008)
