Developing economies to grow 1.2% in 2009

Boosted by the strength of India and China, developing nations would grow 1.2 per cent this year, but without the two, these economies would shrink 1.6 per cent, says the World Bank.

Warning that the world is entering an era of "slower growth", the multilateral lending agency has projected the global economy to shrink 2.9 per cent this year.

The World Bank in its latest report titled 'Global Development Finance 2009: Charting a Global Recovery' has said that excluding India and China, the developing economies would shrink 1.6 per cent this year.

"Developing countries are expected to grow by only 1.2 per cent this year, after 8.1 per cent growth in 2007 and 5.9 per cent growth in 2008.

"When China and India are excluded, GDP in the remaining developing countries is projected to fall by 1.6 per cent, causing continued job losses and throwing more people into poverty," the report said.

The Bank anticipates the global economy to contract 2.9 per cent this year but to grow in 2010. Earlier, the bank projected the world GDP to shrink 1.7 per cent.

"Global growth is also expected to be negative, with an expected 2.9 per cent contraction of global GDP in 2009," the report noted.