The World Bank has again revised its 2010 growth estimate for the global GDP saying that it has expanded by 3.9 per cent in 2010, driven mainly by strong domestic demand in developing countries.
The report contended that East Asia and Pacific region, with GDP growth estimated at 9.3 percent for 2010, led the global recovery. This was on the back of an estimated 10 per cent increase in Chinese GDP and a 35 per cent increase in its imports.
However, the bank in its Global Economic Prospects 2010, said the global growth is expected to be lower at 3.3 per cent in 2011, before picking up to 3.6 per cent in 2012. These predictions are based on easing of restructuring activities in developed countries.
''The world economy is entering into a new phase of recovery,'' Justin Yifu Lin, the World Bank's chief economist and senior vice president of development economics, told reporters.
''On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions,'' said Lin.
The developed countries would be showing a recovery of 2.8 per cent in 2010 after a negative growth of 3.4 per cent in 2009. However, growth will be subdued at 2.4 per cent in 2011 with marginally higher growth of 2.7 per cent in 2012.