Developing countries' GDP to slow: World Bank

The World Bank estimated economic growth in developing countries of 1.2 percent this year, and said that without China and India, output would shrink 1.6 percent, UK News reported. 

Amid the worst global financial and economic crisis in seven decades, the multilateral institution eight days ago lowered its outlook on global growth, to a contraction of 3.0 percent this year.

It slightly revised the global gross domestic product (GDP) figure Monday, to a 2.9 percent decline.
The development lender's preceding forecast, published in late March, put developing countries' annual growth at 2.1 percent, and at zero if China and India were excluded.

In 2010, global growth was projected at 2.0 percent, and that of the developing countries at 4.4 percent, according to the bank. Excluding China and India, the developing countries would grow 2.5 percent.

China's economy was forecast to expand 7.2 percent in 2009 and 7.7 percent in 2010, while India's forecast was for 5.1 percent followed by 8.0 percent.

The World Bank expressed concern about the thinning flow of private capital into developing countries, which has fallen nearly by half this year -- 49 percent -- to 363 billion dollars compared with 707 billion in 2008, after a record 1.2 trillion in 2007.

The development lender also projected a 9.7 decline in global trade volume this year, before a 3.8 percent growth rebound in 2010.

According to RIA Novosti, Russia's gross domestic product may decline by 4.5% this year, the World Bank said in a revised report published on Monday.

"With a much worse global financial outlook and oil prices in the $45 a barrel range, Russia's economy is likely to contract by 4.5% in 2009, with further downside risks," the World Bank said in its Russian Economic Report.

The Bank's previous estimate, released in November last year, predicted 3% growth in Russia in 2009.
Russia's GDP grew 5.6%, year-on-year, in 2008, the country's top statistics body said in February.

Most of the global economic crisis's adverse effect on Russia is expected to be concentrated in the first two quarters of 2009, the World Bank said in its report.