World Bank publishes Global Economic Prospects 2010

The global economic crisis is having serious cumulative impacts on poverty, with 64 million more people expected to be living in extreme poverty by the end of 2010 than would have been the case without the crisis, according to updated analysis. The poorest countries may require an additional $35 billion to $50 billion in funding just to maintain pre-crisis programs. Foreign direct investment (FDI) inflows are projected to decline from recent peaks of 3.9 percent of developing country GDP in 2007 to around 2.8 to 3 percent over the medium term. This has serious implications, as FDI represents as much as 20 percent of total investment in Sub-Saharan Africa, Europe and Central Asia, and Latin America.

Global GDP, which declined by 2.2 percent in 2009, is expected to grow 2.7 percent this year and 3.2 percent in 2011 (or -1, 3.5 and 4 percent when aggregated using Purchasing Power Parity weights). Prospects for developing countries are for a relatively robust recovery, growing 5.2 percent this year and 5.8 percent in 2011—up from 1.2 percent in 2009. GDP in rich countries, which declined by 3.3 percent in 2009, is expected to increase much less quickly—by 1.8 and 2.3 percent in 2010 and 2011 World trade volumes, which fell by a staggering 14.4 percent in 2009, are projected to expand by 4.3 and 6.2 percent this year and in 2011.