The World Bank has Predicted Wide-Spread Growth for 2014 as Economies are Growing

The recent recession has proved troubling for individuals and nations, but hope could soon be on the horizon as the World Bank is expecting extensive growth for 2014.

News from Berlin. After suffering years of recession, financial crisis, fiscal wars and patchwork recovery, few dark clouds are left looming over the global economy, according to the latest global growth forecast coming from the World Bank which was released yesterday. Economists from the World Bank have predicted overall growth from 2.4% last year to 3.2% in 2014 and will remain at this level for the next 2014, which although this doesn’t insinuate any growth it is sure to be a lot more comforting than the turbulent economy of recent years.

Jim Yong Kim, president of the World Bank said in a statement “The performance of advanced economies is gaining momentum, and this should support stronger growth in developing countries”

Even the Euro-area is on the mend, Eurostat reported that factories within the euro-area bloc increased output in November after suffering from decline in the months prior to that. In October, Industrial production rose by 1.8%. Although this news is slightly more optimistic than previous years, it may not be plain sailing to reach the predicted growth. The Federal Reserve’s slow curtailment of its economic stimulus campaign to lower interest rates all over the world poses one of the largest risks for the global economy this year.

Lower-income economies could perhaps expect reduced flows of investments if interest rates do rise which could lead to economic turbulence. Lead author of the report, Andrew Burns said “Whatever negative effect the taper might have, that’s going to be offset by the stronger growth in high-income countries,” he added “It’s not a doom-and-gloom scenario.”

The World Bank expects that the economies of developing countries will grow in 2014 at a moderate pace of 5.3% which despite being slower than the boom years that came before the recession. It would seem that a slower and more moderate growth could prove to be healthier for the economy than a sudden boom as it will promote stability rather than cheap money and financial bubbles.

The Euro-area has been seen to turn a corner; policy and financial uncertainty in the region has eased. Ireland, Portugal and Spain have begun to grow again and the pace of contraction has noticeably slowed down in Greece and Italy.  The monthly Eurostat report has shown that Ireland, which just left its bailout programme, led all European nations with a sharp 11.7% gain in industrial production in November which is a fantastic growth compared to the 6.3% decline in the previous month. Germany  reported a rise of 2.4% and France a 1.4% increase. It is evident that the European Union economy is growing, with the entirety of the EU reporting a 1.5% increas on industrial output in November, making it 3% ahead of the year before.

Berlin Global

News from Berlin.