The world bank cut its global growth outlook for this year, and gave out warnings on lower commodity prices and a looming rise in the US interest rates.
The World Bank has switched on the seat belt sign, and warned countries, especially emerging economies, to fasten their seat belts.
In its twice-yearly Global Economic Prospects Report, the bank lowered its world economic growth prediction to 2.8 percent this year, from its previous forecast of 3 percent.The bank also said the Federal Reserve should hold off on a rate hike until next year to avoid cramping global growth.
Country wise, the World Bank predicts India to become the fastest-growing major economy for the first time this year, growing at 7.5 percent, up from the previous forecast of 6.4 percent. It lowered the growth outlook for the United States to 2.7 percent this year, from 3.2 percent in the previous reading. And 2.8 percent next year, from its January reading of 3 percent.
But the bank cut its 2015 growth forecast for developing countries to 4.4 percent, down from 4.8 percent in January, dragged by expected recessions in Brazil and Russia.
This comes after low commodity prices, especially the drop in oil prices since last year, hurt commodity exporters more than anticipated.