Developing countries- must prepare for a long period of volatility in the global economy -WB
The World bank has warned developing countries that they can expect a prolonged period of volatility in world markets.
Source : https://www.marocafrik.com/english/Developing-coun...
Developing countries should prepare for a long period of volatility in the global economy by re-emphasizing the
medium-term development strategies, while preparing for tougher times, says the World Bank in its new Global Economic Prospects (GEP) report for June 2012.
The World Bank forecasts that developing economies will grow by 5.3% this year, down from 6.1% in 2011.
Developing and high-income country stock markets have lost some 7 percent, giving up two-thirds of the gains generated over the preceding four months. Most industrial commodity prices are down, with crude and copper prices down by 19 and 14 percent,respectively, while developing country currencies have lost value against the US dollar, as international capital fled to safe-haven assets, such as German and U.S. government bonds.
"Global capital market and investor sentiment are likely to remain volatile over the medium term – making economic policy setting difficult.
In this environment, developing countries should focus on productivity-enhancing reforms and infrastructure investment instead of reacting to day-to-day changes in the international environment,” said Hans Timmer, the
Director of Development Prospects at the World Bank.
After initial optimism following the EU bail out of Spanish banks , both the Spanish and Italian economies are showing further signs of strain with bond rates rising which affects their ability to borrow .China's exports are beginning to slow which is likely to affect Asian markets.
medium-term development strategies, while preparing for tougher times, says the World Bank in its new Global Economic Prospects (GEP) report for June 2012.
The World Bank forecasts that developing economies will grow by 5.3% this year, down from 6.1% in 2011.
Developing and high-income country stock markets have lost some 7 percent, giving up two-thirds of the gains generated over the preceding four months. Most industrial commodity prices are down, with crude and copper prices down by 19 and 14 percent,respectively, while developing country currencies have lost value against the US dollar, as international capital fled to safe-haven assets, such as German and U.S. government bonds.
"Global capital market and investor sentiment are likely to remain volatile over the medium term – making economic policy setting difficult.
In this environment, developing countries should focus on productivity-enhancing reforms and infrastructure investment instead of reacting to day-to-day changes in the international environment,” said Hans Timmer, the
Director of Development Prospects at the World Bank.
After initial optimism following the EU bail out of Spanish banks , both the Spanish and Italian economies are showing further signs of strain with bond rates rising which affects their ability to borrow .China's exports are beginning to slow which is likely to affect Asian markets.
Source : https://www.marocafrik.com/english/Developing-coun...