Developing countries are headed for a year of disappointing growth as global economic activity fails to pick-up as expected.
According to the World Bank’s Global Economic Prospects (GEP) report, released Wednesday, first quarter weakness in 2014 has delayed an expected pick-up in economic activity,
Bad weather in the US, the crisis in Ukraine, rebalancing in China, political strife in several middle-income economies, slow progress on structural reform, and capacity constraints are all contributing to a third straight year of sub five per cent growth for the developing countries as a whole.
“Growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 percent,” said World Bank Group President Jim Yong Kim.
“Clearly, countries need to move faster and invest more in domestic structural reforms to get broad-based economic growth to levels needed to end extreme poverty in our generation.”