World Economy Picking Up. According to the World Bank Economists, the economy worldwide is expected to grow stronger during the year 2014. More specifically according to the World Bank’s Global Economics Prospects report, especially in the more advanced financially and developing countries keep on growing, leaving behind them as it seems the last five years of little or no developing due to the worldwide financial crisis.One of the leading countries in growing stronger and developing is China but a rather fast and ongoing growth is also observed in countries with high income, a fact which is also supporting and helping other countries which are on their way for further growth and development which is a quite different situation since in the last years only developing countries boosted the global economy to go forward.
The chief economist and senior vice president of the World Bank said in his report that it is the first time in the last five years that there are signs of the beginning of a process for self sustaining recovery at least among high income countries at the moment but with the prospect that developing countries will follow, taking up the role of a supporting engine of progress and growth in the global economy. Furthermore the report also mentions the fact of the rising of the international interest rates and the possible volatility when it come to capital flows, since the United States Federal Reserve is starting to withdraw large monetary stimulus, this may jeopardize the chances for growth.
The growth of GDP worldwide is calculated to grow from 2.4% during the year 2013 to 3.2% this year (2014), is anticipated to remain stable at 3.4% in the year 2015 and to go up to 3.5% during 2016.The president of the World Bank Group, Jim Yong Kim, declares in a statement that the efficiency of advanced economies is gaining ground and this fact should also enhance the growth in developing countries during these upcoming months. However, in order to reduce poverty even faster, developing countries must embrace several structural amendments aiming to create job positions, to boost financial systems etc.
The economists of the World Bank are anticipating that the growth of the GDP of the high income countries is to go up to 2.2% in 2014 from the 1.3% that reached in the year 2013 and 2.4% in 2015 and also in 2016. This enhanced growth mirrors advancement in the public section as well as in the private section and the expectation is that it will give a push in demand for exports of developing countries, participating this way to their own growth.An acceleration of growth was noted during the second half of the year 2013 regarding the developing countries and it is expected to keep on going in the year 2014 as well, increasing GDP to a 5.3 %.