The World Bank on Tuesday sharply cut its growth forecast for developing countries in light of the spreading financial crisis and said it would loan up to 100 billion dollars over the next three years to help the countries worst affected, according to DPA. The global development bank lowered its 2009 growth prediction to 4.5 per cent for developing countries, down from a forecast of 6.4 per cent made just last month, due to the ongoing credit crisis, falling exports and lower commodity prices. Advanced economies will contract by 0.1 per cent over the year and the global economy as a whole will grow at only 1 per cent, the World Bank said. The revised forecasts are even more pessimistic than those of its sister organization, the International Monetary Fund, which last week projected global growth of 2.4 per cent for 2009. The World Bank also said it expected to triple its financial aid this year to 35 billion dollars, compared to 13.5 billion dollars in 2007, and was prepared to loan out as much as 100 billion dollars over the next three years. The financial crisis that began in the US mortgage market has since sent global stock markets plummeting and left even developing countries struggling to get loans. World Bank President Robert Zoellick urged leaders of the 20 largest economies gathering in Washington Saturday to consider the consequences of their actions on the world's poorest. "Leaders meeting on Saturday to discuss the global financial crisis must not lose sight of the human crisis," he said. "As always, it is the poorest and most vulnerable who are the hardest hit."
