World Bank Chief Urges Nigeria and Other Countries to Increase Their Reforms

World Bank newly-appointed President Jim Yong Kim

Developing countries are headed for a year of disappointing growth as the first quarter weakness in 2014 has delayed an expected pickup in economic activity, according to the World Bank’s Global Economic Prospects report, released on Tuesday.

Bad weather in the United States, crisis in Ukraine, rebalancing in China, political strife in several middle-income economies, slow progress on structural reform and capacity constraints are all contributing to a third straight year of sub five per cent growth for the developing countries as a whole.

The report quoted the President, World Bank Group, Jim Yong Kim, as saying, “Growth rates in the developing world remain far too modest to create the kind of jobs we need to improve the lives of the poorest 40 per cent.”

“Clearly, countries need to move faster and invest more in domestic structural reforms to get broad-based economic growth to levels needed to end extreme poverty in our generation.”

The bank has lowered its forecasts for developing countries, now eyeing growth at 4.8 per cent this year, down from its January estimate of 5.3 per cent.

Signs point to strengthening in 2015 and 2016 to 5.4 and 5.5 per cent, respectively.

China is expected to grow by 7.6 per cent this year, but this will depend on the success of rebalancing efforts. If a hard landing occurs, the reverberations across Asia would be widely felt.