The economic crisis is having an impact on the financial flows of developing countries

BEIJING, June 23 (Xinhua) A report by the World Bank Group on June 22 said that private capital inflows from developing countries fell to $707 billion trillion in 2008, as a result of the global recession and the fragility of financial markets, with a sharp plunge relative to the 1.2 trillion US dollar peak in 2007.　　The World Bank predicts that international capital flows will continue to decline in 2009 years, to $363 billion trillion. A report by the World Bank Group on Global Development Finance 2009: Portraying global recovery warns that the global economy is entering a period of low growth that requires stricter and more effective oversight of the financial system, according to the United Nations website. Developing countries are expected to grow only 1.2% per cent this year, compared with 8.1% in 2007 and 5.9% in 2008. If China and India are not counted, the remaining developing countries are expected to fall by 1.6% per cent of their gross domestic product, leading to continued loss of job opportunities and increased access to poverty. Global gross domestic product is expected to shrink by 2.9% in 2009, making global growth negative. Dailami Mansoor Dailami, the leading author of global development Finance in 2009, said that reduced capital and economic growth would mean less job opportunities, lower trade and less government financial support for the groups most in need.　　He said the tightening situation would continue for quite some time to come, especially in developing countries. According to the 2009 Global Development Finance Report, the Asia-Pacific region is fully aware of the impact of the crisis as a result of close trade links with high-income countries and declining investment and declining exports and industrial production. While several countries are expecting a decline in gross domestic product, growth is expected to be 5% per cent this year. The region's general recovery is expected to start in the second half of this year and continue into next year, reflecting China's significant fiscal stimulus and a weak recovery in export demand from rich countries. However, the turnaround is expected to take place in a gradual manner, with GDP growth of 6.6% per cent in 2010 and a 2011 rise of 7.8% in the region.