ENP Newswire -
Release date- 20062014 - Unlike most developing countries,
Global Economic Prospects 2014, presented in
Overall, the global economy is expected to pick up speed as the year progresses and is projected to expand by 2.8% this year, strengthening to 3.4 and 3.5% in 2015 and 2016. High-income economies will contribute to about half of global growth in 2015 and 2016, compared with less than 40% in 2013.
Developed economies are projected to inject an additional
'With a rising global demand, we expect that a rebound in domestic investments and a pick-up in manufacturing activity will help
Speaking at the launch, Ruhl suggested short- and medium-term priorities that could help
Removal of immediate bottlenecks to growth will be crucial. Improving the business environment by reducing the regulatory and compliance costs for firms could help remove some of these hurdles. Revitalizing the power sector, by improving the performance of distribution utilities, and ensuring that players in the sector are subjected to financial discipline is another step. Further investments in infrastructure, including re-pricing stranded PPP contracts and developing an integrated logistics strategy could address missing links in the transport system.
The GEP 2014 report also points out the need for continued progress on fiscal consolidation to ensure fiscal sustainability and to create space for pro-poor expenditure.
'In addition to making more effective use of resources spent on subsidies for fuel, food and fertilizer,
'Continued fiscal consolidation will help create additional space for private investment. Efficiency in expenditure is one potential avenue for generating the money to raise the quality of public investments in human capital and physical infrastructure,' said
Ruhl emphasized the importance of supporting deeper drivers of growth such as urban infrastructure development and empowering of urban local bodies and boosting agricultural productivity by reducing food distribution inefficiencies, simplifying agricultural trade and marketing, and helping farmers insure against crop risks. Improving the quality of education and further investments in skills and workforce training will be critical in positioning
A key risk to the near-term outlook is weak seasonal monsoon rains, perhaps triggered by
Stressed bank loans (including restructured loans), which now exceed 10% of loans in
For more information on GEP 2014, visit www.worldbank.org/globaloutlook to download the report.
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