World Bank sees 2008 risks for global economy

WASHINGTON, January 13, 2011 (AFP) – The World Bank warned Wednesday the global economy could return to the dark days of the 2008 crisis, with slowing growth and rising commodity prices. After the recession in 2009 and the 2010 rebound, the multilateral institution said, 2011 is expected to be a year of deceleration.

In its latest projections, the bank estimates global growth of 3.3 percent this year following a 3.9 percent rate in 2010.

Emerging and developing countries were expected to expand 6.0 percent, down from a 7.0 percent pace in 2010, the bank said in its latest Global Economic Prospects report.

But that was more than double the 2.4 percent rate expected to be clocked by high-income countries this year, slowing from a 2.8 percent rate in 2010.

Growth in both high-income and developing countries, however, was expected to pick up toward mid-2011, and “settling at rates close to their longer-run potential.”

For 2012, growth in the global economy was seen rising at a 3.6 percent rate. High-income countries were expected to expand by 2.7 percent and developing countries would speed up just a notch, to 6.1 percent.

Still, the overall pace of growth is t