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The World Bank has slashed its global growth outlook for this year,. citing slowing growth
both in Europe and emerging countries.
And it says developing countries will no longer be able to lead the global economy to a recovery
as fast as they did before the 2008 financial crisis,. as the economic outlook for those
countries also remains bleak.
Yoo Li-an reports. It seems it may take a bit longer than expected to get the global
economy back on its feet.
The World Bank has cut its growth forecast for the global economy this year from 2-point-4
to 2-point-2 percent.
In a report released on Thursday, the bank said the world will expand at a slower pace
in 2013,. citing the continuing recession in Europe, attributed to weak investor confidence
and a recent slowdown in emerging markets.
It added the major developing countries that have led global growth in the past will not
see the same kind of boom they did before the global financial crisis,. and that structural
reforms are now needed to regain fast growth.
The World Bank is not the only institution putting out negative forecasts for these emerging
countries.
Investment bank Morgan Stanley revised down Korea's economic growth forecast by point-four
percentage points to two-point-nine percent on Thursday,. citing China's slow growth.
It said that China is focusing on boosting domestic demand and on economic reform,. which
will most likely slow the nation's growth rate.
And so the investment bank says that Korea, which has China as its biggest trading partner,
will in turn see a drop in exports as well as in capital expenditure.
Yoo Li-an, Arirang News.