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                      DECPG Daily
        Economics and Financial Market Commentary
                    January 15, 2014
                            Derek Chen, Gerard Kambou, Eung Ju Kim


  You’ll find recent issues of this Daily and lots of other current analysis and high -frequency data at our
                                    website: http://www.worldbank.org/gem

World Bank sees stronger global growth as rich economies expand

The world economy is projected to strengthen this year, with growth picking up in
developing countries and high-income economies appearing to be finally turning the
corner five years after the global financial crisis, according to the World Bank ’s newly-
released Global Economic Prospects (GEP) report.
Global GDP growth is projected to firm from 2.4% in 2013 to 3.2% this year, stabilizing
at 3.4% and 3.5% in 2015 and 2016, respectively, with much of the initial acceleration
reflecting stronger growth in high-income economies.
Growth in developing countries will pick up from 4.8% in 2013 to a slower than
previously expected 5.3% this year, 5.5% in 2015 and 5.7% in 2016. While the pace is
about 2.2 percentage points lower than during the boom period of 2003-07, the slower
growth is not a cause for concern. Almost all of the difference reflects a cooling off of
the unsustainable turbo-charged pre-crisis growth, with very little due to an easing of
growth potential in developing countries. Moreover, even this slower growth represents
a substantial (60%) improvement compared with growth in the 1980s and early 1990s.
                        GEP website: www.worldbank.org/globaloutlook

             Recent issues and other current analysis is also available on the Prospects blog




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DECPG Daily is an informal briefing for Bank staff whose responsibilities require that they stay abreast of
changes in global markets. The views expressed here are those of the various authors and do not
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