Global economy to grow at 2.7 per cent this year, predicts World Bank

The World Bank has forecast increased global economic growth for the coming year after the passing of the "acute phase" of the world recession. In its report Global Economic Prospects 2010 released on Thursday, it predicted 2.7 per cent world economic growth in 2010, and 3.2 per cent for 2011.

This follows a 2.2-per cent contraction in 2009.

However, the bank warned that the recovery was "fragile", with the rebound expected to slow at the end of the year "as the impact of the fiscal stimulus wanes". It warned that mishandling of the recovery could lead to a double-digit contraction in 2011.

Much depends on the management and timing of withdrawals of large stimulus programmes and adjustments to monetary policy implemented by most economies. "A global economy to grow at 2.7 per cent this year, predicts World Bank.

The World Bank has forecast increased global economic growth for the coming year after the passing of the "acute phase" of the world recession. In its report 'Global economic prospects 2010' released on Thursday, it predicted 2.7 per cent world economic growth in 2010, and 3.2 per cent for 2011.

This follows a 2.2 per cent contraction in 2009.