- Andrew Burns, the lead author of the report
In its latest assessment of the global economy and the Eurozone economy in particular, the World Bank said they expected slower, but less volatile growth in the coming months and years. The main reasons for that are the fading Eurozone debt crisis, adaptation of emerging economies to new challenges from softer commodity prices as well as prospects of rising interest rates. Economic contraction in the 17-nation economy is expected at 0.6% for 2013, compared with previous estimates of a 0.1%. Meanwhile, the Eurozone growth is expected to be a modest 0.9% during the next year and accelerate to 1.5% in 2015.
The World Bank sees fragile economies and even in some cases deeply troubled in Eastern Europe as countries in Central and Eastern part of Europe are still emerging from the post-Soviet era and, at the same time, suffering from the same problems as countries in high-income Europe. Amid these problems were mentioned fragile banking sectors, credit problems and huge budget deficits. Nevertheless, grow is likely to pick up in developing Europe to more than 4% in 2015 compared with around 2.7% recorded last year. All in all, the bank expects that the global economy will expand about 2.2% this year and 3% in the next one.
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