In an outlook released Tuesday, the bank still expects the world economy to grow faster — 2.8 percent this year versus 2.4 percent in 2013. But its new estimate is weaker than the 3.2 percent expansion it had predicted in January.
The U.S. economy — by far the world's largest — shrank at an annual rate of 1 percent from January to March, chilled by an unusually nasty winter. The political crisis in
Helped by super-low interest rates, the world's wealthiest countries will expand 1.9 percent this year, up from 1.3 percent in 2013. In developing countries, growth is expected to stay flat at 4.8 percent.
In its twice-yearly Global Economics Prospects report, the
World growth is accelerating as the U.S. and
The rate of economic growth has stalled in
Central banks, including the U.S. Federal Reserve, have been supporting economic growth by keeping interest rates low. Last week, the
But he and other economists worry about what will happen when the central banks declare their mission accomplished and let interest rates rise again. Higher rates in the U.S. and
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