Report urges developing countries to implement structural reforms to raise the economic capacities
World Bank has released the Global Economic Prospects 2014. Key highlight of the report are as follows:* World economy is showing signs of bouncing back this year
* Advanced economies are turning the corner
* Developing countries regain strength after two weak years
* US taper could throw curve balls, as global economy strengthens
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* Growth prospects sensitive to the tapering of monetary stimulus in the United States and structural shifts taking place in China's economy.
* Developing countries growth to pick up from 4.8% in 2013 to 5.3% this year, 5.5% in 2015 and 5.7% in 2016.
* Global GDP is projected to grow from 2.4% in 2013 to 3.2% this year, stabilizing at 3.4% and 3.5% in 2015 and 2016, respectively, with much of the initial acceleration reflecting a pick-up in high-income economies.
* For high-income countries, the drag on growth from fiscal consolidation and policy uncertainty will continue to ease, accelerating economic growth from 1.3% in 2013 to 2.2% this year, stabilizing at 2.4% for each of 2015 and 2016.
* Amongst high-income economies, the recovery is most advanced in the US, with GDP expanding for 10 quarters now. The US economy is projected to grow by 2.8% this year (from 1.8% in 2013), firming to 2.9 and 3.0% in 2015 and 2016, respectively.
* Growth in the Euro Area, after two years of contraction, is projected to be 1.1% this year, and 1.4 and 1.5% in 2015 and 2016, respectively.
* Report urges developing countries to implement structural reforms that would help raise the capacity of their economies, if they are to regain their pre-crisis growth rates. It outlines some measures that policymakers could implement to set in motion a virtuous cycle of stronger investment, including foreign investment, and output growth over the medium term.
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