World Bank said it expected the Gross Domestic Product of developing countries to grow by 1.2% in 2009, excluding China and India while GDP in the remaining developing countries is projected to fall by 1.6%.
International Monetary Fund and World Bank say the global recovery is largely threatened by risks and regulators should take measures to slow inflation and mitigate other drawbacks in the road to economic revival.
The previous predictions, published at end-March were indicating an annual growth of 2.1% for developing countries, the growth being null if India and China were not included.
In 2010, the global GDP growth is expected to rebound to 2% while in the developing countries growth is projected at 4.4% (2.5% excluding India and China), according to World Bank.
These forecasts were published in “Global Development Finance 2009; Charting a Global Recovery”, occasioned by an economic conference in Seul.
World Bank expressed its concerns on the reduction of private capital inflows to emerging countries, which could sink by 49% in 2009, to 363 billion dollars from 707 bln dollars in 2008, a sharp drop from a peak of 1.2 trillion dollars in 2007.
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