World Bank warns of downturn worse than 2008

January 18, 2012 – 10:14 am

The World Bank warned Wednesday of a possible slump in global economic growth and urged developing countries to prepare for shocks that could be more severe than the 2008 crisis.

For the United States, the bank cut this year’s growth forecast to 2.2 percent from 2.9 percent and for 2013 to 2.4 percent from 2.7 percent.

As reasons, it cited the anticipated global slowdown and the on-going fight in Washington over spending and taxes.

The bank also cut its growth forecast for developing countries this year to 5.4 percent from 6.2 percent and for developed countries to 1.4 percent from 2.7 percent.

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