World Bank warns of global economic growth slowdown

London, Jan 18 (ANI): Weaker economic growth in India, Brazil and other developing nations, and a recession in Europe will slow global economic growth, the World Bank has warned.

The bank, in its annual report, substantially cut its forecasts for growth in both developed and poorer nations.

It projected that the global economy will expand 2.5 percent this year and 3.1 percent in 2013, down from a June forecast of 3.6 percent growth for both years, the Daily Express reports.

"The world is very different than it was six months ago. This is going to be a very difficult year," Andrew Burns, head of the bank's global economics team and lead author of the report, said.

The report noted two major reasons for the projected global slowdown. Firstly, Europe's debt crisis has worsened and several big developing countries have taken steps to prevent growth from overheating and fuelling inflation. Secondly, each trend is negatively affecting the other.

At the same time, India, Brazil, Russia, South Africa and Turkey are taking steps to rein in borrowing in order to cool their economies.

The bank forecasted that developing countries would grow 5.4 percent this year, below its June estimate of 6.2 percent, and developed nations would expand only 1.4 percent down from its earlier 2.7 percent projection.

According to the bank, the US economy would grow 2.2 percent in 2012 and 2.4 percent in 2013. In June, the World Bank said the US would grow 2.9 percent in 2012 and 2.7 percent in 2013. (ANI)