World Bank: Global GDP to shrink 2.9% this year

Author: Comprehensive house prices rose, the stock market rose, the economy began to recover? In a report on the global Development Finance 2009: A roadmap to global recovery, released on June 22, the World Bank released its pessimistic forecasts for the development of the international economy. The report predicts global GDP will shrink by 2.9% this year, further downward from the March expected negative 1.7%.　　Among them, emerging economies, which have been prominent in the past two years, will collectively "Yahuo" and are expected to grow by only 1.2%. Private capital flows slowed this year March 31, the World Bank published a report predicting that this year's global economy will fall 1.7%, the first time since the Second World War, the global economy fell.　　The number of the June 22 report was again lowered to 2.9%. The World Bank warns that the global economy is entering a period of low growth that will require stricter and more effective regulation of the financial system. The report notes, in particular, that the global recession and financial crisis will hit emerging economies hard.　　NET inflows of private capital to developing countries last year have fallen sharply from a 1.2 trillion dollar high in 2007 to $707 billion trillion, and the 2009 figure is expected to fall further to $363 billion, according to the bank's data. Dragged down by such factors as capital inflows, the bank expects growth in developing economies this year to be significantly lower than the 5.9% and 2007 of last year's 8.1%.　　The report predicts that if China and India are not included, the economy of developing economies will fall by 1.6% this year, and unemployment and poverty will increase further. The report said that global integration and the growing role of private institutions in international finance had brought great benefits but also increased confusion.　　Today, the developing world is heavily reliant on private capital flows, and many countries have been hit hard by the collapse of corporate finance, while big companies and banks that provide growth momentum are now in deep trouble. "In order to prevent a second wave of turbulence, policy needs to be quickly focused on financial sector reform and aid to the poorest countries," said Timmer, the World Bank's Forecast bureau director. "Pessimistic expectations, the European Central Bank has also cut regional economic forecasts this month, the central bank now believes the eurozone economy will shrink by 4.6% this year, and will resume growth in 2010."　　March, the ECB expects the economy to shrink by 2.7% in 2009.　　And as the World Bank cut expectations of a global economic recovery, world stock indices fluctuated sharply and commodities followed.　　June 22 local time, the U.S. stock index tumbled 2.36%, the Nasdaq fell 3.35%. 23rd, the Shanghai Composite Index opened 2853.49 points, down 1.48%, Shen exponentially opened a newspaper 11019.71 points, down 1.53%.　　A-share market more than Bacheng stocks fell, resource stocks, financial stocks, such as leading the big city. The 2010 recovery of the bank's report also predicts that the world economy will recover gradually in 2010, with 2010 global GDP expected to grow by 2% and 2011 by 3.2%. Among them, the developmentEconomies rebounded faster, with growth of 4.4% per cent in 2010 and 2011 to 5.7%. In addition, last week, the bank released an early assessment of the Chinese economy. Among them, the World Bank has increased China's 2009 GDP growth forecast to 7.2% per cent, and in its previous report, the World Bank predicts that China's GDP will grow by 6.5% in 2009.　　The bank also raised its 2010-year growth forecast for China from 7.5% to 7.7%. For India, the bank has also raised its growth forecasts for the country for the next two years.　　The latest forecast is a 5.1% increase this year, expected to be 4%, and next year India's growth forecast will rise to 8%, before 7%. For advanced economies, the Bank believes South Korea is poised to become one of the fastest recoveries in the OECD. The South Korean economy will grow 3% to 3.5% this year, thanks to its solid macroeconomic structure and close economic ties with China, the World Bank's vice president and chief economist Justin Lin said 22nd, but the economy is expected to rebound strongly by 2011, with a growth rate of 4% to 5% per cent as the global economy picks up.