Brasília – World economic growth this year should be slow, but more solid than in 2010. The conclusion was reached by the World Bank in its Global Perspectives 2011. Developing countries should grow by 6% in 2011 and 6.1% in 2012.
According to the survey, developing countries should surpass the growth projection for wealthier countries – 2.8% in 2010, 2.4% in 2011 and 2.7% in 2012. The World Bank calculates that the global Gross Domestic Product (GDP), which increased by 3.9% in 2010, should drop to 3.3% in 2011.
The World Bank estimates that Latin America and the Caribbean should grow by an average of 4% in 2011 and 2012. According to the survey, international trade grew in the majority of developing countries in 2010. The GDP in these nations grew by an average of 5.3% last year. The outlook is good and points to the strengthening of this trend – at an average growth rates of 6.5% this year and in 2012.
The report warns that rising food prices have impacted on all of the economies. In some countries, the effects of the price hike were deflated economies and costlier goods and services.
"The increase of up to two digits in prices of commodities over the last few months put [even greater] pressure on families in countries with [high] rates of poverty and malnutrition. Should the prices of food and other commodities rise further, then we will see a repetition of what took place [in terms of seriousness] in 2008," said the director of the Global Macroeconomic Trends Team at the World Bank, Andrew Burns.
*Translated by Gabriel Pomerancblum
