The World Bank announced on Wednesday that it now expects lower levels of global growth in 2012 and 2013 than previously predicted. According to the Global Economic Prospects report, the 17-member eurozone - saddled with a string of debt-related difficulties - was set to reenter recession in 2012.
The World Bank lowered its growth forecasts for 2012 to 5.4 percent for developing countries, 1.4 percent for high-income countries, and negative 0.3 percent for the eurozone. Its previous estimates, released last June, stood at 6.2 and 2.7 percent, with 1.8 percent growth for Europe's single currency bloc.
"Europe appears to have entered recession, and growth in several major developing countries (Brazil, India and to a lesser extent Russia, South Africa and Turkey) has slowed," the bank said.
The report added to Europe's financial headaches, coming less than a week after rating agency Standard & Poor's decided to downgrade nine eurozone economies' perceived creditworthiness in a single day.
"The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce on another, resulting in an even weaker outcome," the bank said.
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