World Bank Is Expecting Widespread (if Still Possibly Turbulent) Growth for 2014.
The World Bank expects global economic growth to accelerate to 3.2% in 2014 from 2.4% in 2013, led by advanced economies that seem "to be finally turning the corner" following the financial crisis. In its Global Economic Prospects report, the bank also forecast that the U.S. will expand 2.8% this year vs 1.8% last year.
WASHINGTON — After years of recession, financial crisis, fiscal wars and a patchwork recovery, there are relatively few dark clouds on the horizon for the global economy.
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Some lower-income economies may suffer from reduced inflows of investment if interest rates rise, the bank warned, as it has for months. That could lead to defaults and economic turbulence. Even so, the bank’s economists do not see the Fed’s so-called tapering as pushing global growth off its path.
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“Whatever negative effect the taper might have, that’s going to be offset by the stronger growth in high-income countries,” Andrew Burns, the lead author of the report, said in an interview. “It’s not a doom-and-gloom scenario.”
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This year, global momentum should benefit from a growing United States, a bottomed-out Europe and a revitalized Japan, the report said.
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“The high-income countries are growing,” Mr. Burns said. “For the first time in five years, we have two engines at the head of the train of global growth.”
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