World Bank lowers growth forecast for developing world

The World Bank has revised down its forecast for economic growth in the developing world this year - from 5.3% down to 4.8%.

If right, it would be the third consecutive year of growth below 5% for this group of countries.

The Bank says that developing nations need to make economic reforms to promote growth.

But the new report does predict that growth in these countries will accelerate in 2015.

"Disappointing" is the word the Bank uses to describe the developing world's likely performance this year.

The organisation's president, Jim Yong Kim said these growth rates are "far too modest to create the kind of jobs we need to improve the lives of the poorest 40 per cent."

Temporary effects

However, there are some optimistic elements to the report.

The downgraded forecast reflects the impact of the Ukraine crisis, bad weather in the United States and other factors.

Some of these will be temporary and the Bank expects the developing world to record growth of around 5.5% next year and in 2016, which the report says is "broadly in line with potential," which means the rate of growth that they could sustain.

They will be helped by the stronger growth coming through in many rich countries, notably the US and the euro area.