World Bank Cuts '09 Global Forecast

By Joe McDonald

BEIJING -- The World Bank has cut its 2009 global growth forecast, saying the world economy will shrink by 2.9% and warning that a drop in investment in developing countries will increase poverty.

"The global recession has deepened," the Washington-based multilateral lender said in a report.

Global trade is expected to plunge by 9.7% this year, while total gross domestic product for high-income countries contracts by 4.2%, the bank said. It said economic growth in developing countries should slow to 1.2% -- but excluding relatively strong China and India, developing economies will contract by 1.6%. ...