World Bank President Robert Zoellick said on Tuesday that in the past few weeks more developing countries are turning to the World Bank for help, a sign that more countries are now being hit by the global financial crisis.
Zoellick said the Bank is now estimating that global trade, the lifeblood of economies will drop for the first time since 1982 due to global credit strains.
The World Bank on Tuesday sharply cut its growth forecast for developing countries to 4.6 percent for next year, from 6.4 percent projected in June, due to a combination of financial turmoil, slower exports and weaker commodity prices.
Zoellick said the World Bank's war chest could allow it to commit up to $100 billion in new lending to emerging economies over the next three years.
It could also provide up to $42 billion in grants and low-interest loans to poorer countries who may not be directly hit by the financial crisis but will feel the effects of a slowing global economy, he added
No comments:
Post a Comment