In Europe, Russia is set to overtake Germany as the continent's biggest economic player by 2050.This according to Price Waterhouse Cooper's projections, that agree with the World Bank's Global Economic Prospects report released on Wednesday. The WorldBank warned developing countries to strengthen their own economies rather than rely on a rebound from developed nations.
"We can't wait for a return to growth in high-income countries," said World Bank president Jim Yong Kim."So we have to continue to support developing countries in making investments in infrastructure, in health, in education." (Daily Telegraph)
The World Bank said low-income countries were responsible for more than half of global GDP growth in 2012, when developing country GDP rose 5.1%. This is set to rise steadily to 5.8% in 2014 and 2015.
Developed nations, by contrast, saw GDP grow 1.3%, dragged down by contraction in the eurozone, which the Bank does not expect to return to growth until 2014. compared with 1.3% GDP growth among developed nations.
The report identified the eurozone debt crisis and debt and fiscal issues in the US as key risks to the global economy, along with a possible investment slowdown in China.