Global economy to grow at 2.7 p.c. in 2010: World Bank

A daily wage labour waits at a junction for a call for the day in Kolkata. The global meltdown has slowed down several activities, particularly the real estate sector. File photo: Arunangsu Roy Chowdhury

The World Bank on Thursday projected that the global economy is likely to grow at a rate of 2.7 per cent in 2010, but warned that the economic recovery is still fragile.

It also added that the process of recovery would gradually slow down later this year as the impact of fiscal stimulus wears away.

In its report ‘Global Economic Prospects 2010’ the World Bank has said: “Global GDP, which declined by 2.2 per cent in 2009, is expected to grow 2.7 per cent this year and 3.2 per cent in 2011“.

However, it warned that while the worst of the financial crisis may be over, the global recovery is still fragile and that the recovery that is now underway will slow down later this year as the impact of fiscal stimulus wanes.

Meanwhile on Wednesday, International Monetary Fund chief Dominique Strauss-Khan had said the global economy is recovering more strongly than expected and projected that growth rate in 2010 is likely to beat the forecast of 3 per cent.

The World Bank also said that the financial markets remain troubled and private sector demand lags amid high unemployment.