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WB: Double-dip recession can’t be ruled out

10 June 2010 07:54 (UTC +04:00)

Baku â€“ APA-Economics. The World Bank on Wednesday said a double-dip recession could not be ruled out in some countries if investors lose faith in efforts in Europe and elsewhere to tackle rising debt levels, Reuters reported.

The World Bank forecast that developing economies would expand at between 5.7 percent and 6.2 percent each year from 2010 to 2012 -- more than twice the growth rate of advanced economies. This is substantially higher than last year’s 1.7 percent.

But should the crisis in Europe worsen and spread, the World Bank said the pace of growth in developing countries would slow to 6.1 percent this year and 5.7 percent in 2011,

Advanced economies are projected to expand by between 2.1 and 2.3 percent in 2010 -- not enough to undo the 3.3 percent contraction they experienced last year -- followed by growth of between 1.9 and 2.4 percent in 2011.

Meanwhile, global growth is likely to expand by 3.3 percent in 2010 and 2011, rising somewhat after that to 3.5 percent in 2010, the bank said.