|WORLD BANK WARNS ABOUT GLOBAL ECONOMIC OUTLOOK|
Aruba, January 7, 2016 - The World Bank has warned of new threats to efforts to reduce poverty in the developing world.
In its twice-yearly assessment of global economic prospects, the bank forecasts only a modest increase in growth.
The report also says that there has been an increase in risks to the global economy.
The bank's chief economist suggests that China's economic slowdown is a potential danger.
But there are some relatively upbeat elements to this report. The World Bank does think that global economic growth will pick up this year.
The rich countries will gain some speed and the emerging economies will grow more rapidly than last year. But then 2015 was, for the developing economies, what the bank calls a post-crisis low in terms of economic growth.
This year's forecast, 2.9% for the global economy compared with 2.4% last year, is still not robust. Nor is the forecast for the developing economies, at 4.8%.
South Asia, led by India, is described as a "bright spot". But among the other largest emerging economies, sometimes known as the Brics, growth is expected to slow further in China, while Brazil and Russia are likely to remain in recession.
The Bank's chief economist, Kaushik Basu, said there is greater divergence between emerging economies. He also says the risks to the forecast have increased in the last six months, "particularly those associated with the possibility of a disorderly slowdown in a major emerging economy".
He didn't name the emerging economy that was behind that remark, but it's not hard to guess that it was China. The report warns that weakness in major emerging economies could pose a threat to hard-won gains in raising people out of poverty.
Read more at: http://www.bbc.com/news/business-35246867