Home / Knowledge / News / Developing nations may not see pre-crisis growth rates: WB
Developing nations may not see pre-crisis growth rates: WB
Jun '13
Growth in several middle income countries has been held back by supply bottlenecks and is unlikely to reach pre-crisis rates unless supply-side reforms are pursued vigorously, says the World Bank in its latest report.
In its latest report “Global Economic Prospects - June 2013: Less volatile, but slower growth”, the World Bank says, developing economies have more or less completely recovered from the 2008 crisis and less volatile external conditions are expected to yield a gradual acceleration of activity in developing regions. 
The report projects the GDP of developing countries to be around 5.1 percent in 2013, strengthening to 5.6 percent and 5.7 percent in 2014 and 2015, respectively.
Growth has slowed in China as authorities seek to rebalance the economy, states the report.
Region-wise, East Asian economies are expected to grow by 7.3 percent this year, while the economies of South Asia and Sub-Saharan Africa are likely to post an average growth of 5.2 percent and 4.9 percent, respectively.
The report projects growth in Latin America to be at 3.3 percent this year, while it forecasts a 2.8 percent growth for developing Europe and Central Asia. Among the developing world, the Middle East & North Africa (MENA) region is expected to grow at the lowest rate of 2.5 percent in 2013.
However, the report adds that developing countries are not a homogenous group, and policy prescriptions need to be tailored accordingly.
In particular, it says that several fast growing economies in East Asia, Sub-Saharan Africa and a few in Latin America are at risk of overheating. It suggests that tighter macroeconomic policy stances are warranted to reduce vulnerabilities in these economies.
For BIRCS nations, except China, the report says, “Weak growth in the face of capacity constraints in some economies requires supply side structural policy reforms to boost potential growth, notably in Brazil, India, Russia, and South Africa.”
The report lists large output gaps in developing Europe and in several MENA economies as a cause of concern. “In the former, limited macroeconomic space necessitates reforms to improve competitiveness, while in the latter, an easing in political tensions and conflicts and urgent structural reforms are needed to boost growth, improve the business environment and create jobs.”
Overall, the output gaps in most developing economies are small, and appear to be closing and policy appears broadly to be on track, the report concludes.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search