Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Brewin's Gutteridge: bonds with Ian Spreadbury

Brewin's Gutteridge: bonds with Ian Spreadbury

This week Brewin Dolphin's research head chats to Fidelity's Ian Spreadbury about the recent behaviour of interest rates and credit spreads.

Play Can tech advances explain the UK productivity puzzle?

Can tech advances explain the UK productivity puzzle?

Much of the productivity puzzle of the last eight years may be explained by a failure to capture new tech

Brewin's Gutteridge: Yuan direction

Brewin's Gutteridge: Yuan direction

This week Brewin Dolphin's research head chats to Fidelity Asian Investment Directors Jenny Lee and Gary Monaghan about the big changes in China.

Your Business: Cover Star Club

Small is beautiful: wealth firms still see value in less rich

Small is beautiful: wealth firms still see value in less rich

Latest statistics from findawealthmanager.com show that there are many firms who still service smaller clients.

Wealth Manager on Twitter