Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

World Bank slashes growth forecast and warns 'prepare for next crisis'

World Bank slashes growth forecast and warns 'prepare for next crisis'

The World Bank has warned investors to prepare for the next crisis and slashed its global growth forecast from 3.2% to 2.8% amid concerns about bad weather in the US, the Ukraine crisis and future changes to macro policy.

Overall the organisation sees global growth of sub-5% for the third consecutive year with developing countries set to be the biggest disappointment.

The World Bank lowered its January forecast of 5.3% growth from developing nations to 4.8%, although it expects them to rebound sharply over the next two years delivering 5.4% growth in 2015 and 5.5% in 2016.

The organisation forecasts growth of 1.9% from developed nations in 2014, which it anticipates will accelerate to 2.4 next year and 2.5% in 2016.

Kaushik Basu, senior vice president and chief economist at the World Bank, said that short term financial risks have become ‘less pressing’ although stock and bond markets remain vulnerable to changes in monetary policy.

'The financial health of economies has improved. With the exception of China and Russia, stock markets have done well in emerging economies, notably, India and Indonesia. But we are not totally out of the woods yet,' he said.

'A gradual tightening of fiscal policy and structural reforms are desirable to restore fiscal space depleted by the 2008 financial crisis. In brief, now is the time to prepare for the next crisis,'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter