World chilled by US slump

SEVERE US weather and the crisis in Ukraine have dampened global growth prospects this year, according to the World Bank’s new forecasts yesterday.

The World Bank says global growth is likely to be 2.8 per cent this year, down from the 3.2 per cent previously projected.

Societe Generale analysts added that the dip in US GDP in the first quarter could be even worse than the one per cent annualised drop reported, suggesting a 2.4 per cent plunge in output.

For emerging economies, the World Bank has reduced its growth forecast to 4.8 per cent, a cut of half a percentage point. If the prediction holds, it will be the third straight year of growth lower than five per cent.