World Bank Ups 2010 Global Growth Projection to 3.3 Pct

Washington, June 9 (Jiji Press)--The global economy is expected to
grow 3.3 pct in 2010 in real terms, the World Bank said Wednesday, a
0.6-percentage-point upward revision from its previous estimate in January.
The World Bank also revised up its growth forecast for the Japanese
economy to 2.5 pct from 1.3 pct in its Global Economic Prospects 2010,
expecting rapid recovery in exports.
Still, the bank warned that "the global economic recovery continues
to advance, but Europe's debt crisis has created new hurdles on the road to
sustainable medium-term growth."
According to the report, the global economy, after contracting 2.1
pct in 2009, is projected to regain positive growth in 2010 thanks mainly to
improvement in trade on the back of robust growth in emerging economies.
The global economic growth is forecast to stay flat at 3.3 pct in
2011 but rise to 3.5 pct in 2012, the report said.
As for the Japanese economy, the World Bank projects growth of 2.1
pct in 2011 and 2.2 pct in 2012.
The report said that "while the impact of the European debt crisis
has so far been contained, prolonged rising sovereign debt could make credit
more expensive and curtail investment and growth in developing countries."
The recovery "faces several important headwinds over the medium
term, including reduced international capital flows, high unemployment, and
spare capacity exceeding 10 pct in many countries," the report warned.