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

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Interviews View All

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

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

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search