WB lowers projection for global economic outlook to 2.8%

The World Bank on Tuesday lowers its projection for the global economic outlook this year, as developing countries are heading for disappointing growth, while high-income countries are gaining momentum.

The Washington-based bank forecasts the global economy to grow 2.8 percent this year, down from its January estimate of 3.2 percent, according to its twice-yearly Global Economic Prospects report.

"Developing countries are headed for a year of disappointing growth, as first quarter weakness in 2014 has delayed an expected pick-up in economic activity," the report noted.

Bad weather in the United States, the crisis in Ukraine, rebalancing in China and political strife in several middle-income economies slow progress on structural reform, it said.

The bank has lowered its forecasts for developing countries to a growth of 4.8 percent this year, down from its January estimate of 5.3 percent. It is a third straight year of below five percent growth for the developing countries. Growth will pick up to 5.4 percent in 2015 and 5.5 percent in 2016.

China is expected to grow 7.6 percent this year, slightly down from its January estimate of 7.7 percent, but this will depend on the success of rebalancing efforts, the bank said.

Despite first quarter weakness in the United States, the recovery in high-income countries is gaining momentum, the bank said, estimating that these economies will grow 1.9 percent in 2014, and will accelerate to 2.4 percent in 2015 and 2.5 percent in 2016.