World Bank lowers global economic growth rate

World Bank lowers global economic growth rate

 The World Bank Tuesday lowered its global economic growth rate forecast to 2.5 percent in 2012 from its previous estimate of 3.6 percent, amid risks triggered by the ongoing eurozone crisis.

Developing countries should prepare for further downside risks, as the eurozone debt problems and weakening growth in several big emerging economies are dimming global growth prospects, the Washington-based organization said in its newly-released flagship report "Global Economic Prospects (GEP) 2012".

"The world economy has entered a very difficult phase characterized by significant downside risks and fragility," the report said.

The bank has lowered its growth forecast for 2012 to 5.4 percent for developing countries and 1.4 percent for high-income countries, down from its June estimates of 6.2 percent and 2.7 percent respectively, reported Xinhua.

Global growth is now projected at 3.1 percent for 2013, down from its June estimate of 3.6 percent.