Economic Growth of Developing Countries - Will Reach 6%

Otofinanceinfo - 'World Bank' represents the economic growth of developing countries are projected to increase from 1.7 percent in 2009, to approximately six percent for 2010-2012.

Stable growth was seen in each year, covering the anticipated growth slowdown will occur in China ranging from 9.5 percent in 2010 to 8.5 percent in 2011. When the fiscal stimulus provided in 2009 was ending.

"With the exception of China and India, the GDP of developing countries is projected to increase 4.4 percent in 2010, 4.4 percent in 2011, and 4.6 percent in 2012," said World Bank Chief Economiest Justin Yifu Lin told reporters during a teleconference at the office World Bank, Exchange Building, Jakarta, Thursday, 10 June 2010.

He continued, high demand for external financing in times of reduced capital flows lead to significant adjustments in the current account (current account), and slower growth in some developing countries during 2009.

As a result, financing needs are expected to decline from USD1, 2 trillion to USD1, 1 billion in 2010.

"Most of the decline that occurred in 2010 caused by a reduction in the current account deficit imposed on developing countries through the reduction of international capital flows amounted to 40 percent during 2009," he added.

According to him, the current account balance in these countries are experiencing a deficit is reduced by almost half from USD283 billion to USD128 billion in 2009. In some developing countries in Europe and Central Asia, the deficit shrank to less than 50 percent.

While the medium and long-term debt with a maturity also decreases thus reducing the requirements for financing, but short-term debt has increased leading to the occurrence of re pernjadwalan overall debt.

"Based on the assumption that the current account deficit remained at the level as in 2009 as a percentage of GDP, the total external financing needs of developing countries is projected for USD1, 1triliun for 2011 through 2012," he said. Thank you for visit (otofinanceinfo)