Development banks see emerging economy slowdown

31 March 2009

The World Bank has halved its economic growth forecast for the developing world in 2009 to just +2.1%. The Asian Development Bank (ADB) meanwhile says developing Asia will grow by +3.4% in 2009.

Deteriorating financial and economic conditions has prompted the World Bank to revise its forecast for developing world growth down from the previous projection of +4.4% in 2009.

It also says that the with GDP expected to fall by -3% in the Organisation for Economic Co-operation and Development (OECD) countries - the world's 30 richest economies - and -2% in other high income economies, world GDP will fall -1.7% this year. This would be the first fall in world output since World War II.

The bank sees a weak recovery getting underway in 2010, but expects unemployment to continue rising until 2011.


In a similar forecast to the World Bank's, the ADB's Asian Development Outlook 2009 report says economic growth in developing Asia will bounce back to +6% in 2010, following this year's meagre +3.4% rise in GDPO. The ADB says economic growth in the region was +6.3% last year and +9.5% in 2007.

ADB acting chief economist Jong-Wha Lee said, "The short term outlook for the region is bleak as the full impact of the severe recession in industrialised economies is transmitted to emerging markets."

Latest News
Latest episode of Construction Briefing podcast now available
New episode of Construction Briefing podcast focuses on Ukraine 
Sany America rolls out new RT
At the ARA show in New Orleans last month, Sany debuted a new 55-ton capacity rough terrain crane.
Peri debuts new formwork system
In response to a surge in U.S. construction, Peri USA has develoed a new formwork solution that caters to various size ranges for wall, column, and slab formwork