Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

World Bank sees 3pc global contraction

WASHINGTON, Jun 11 – The World Bank said on Thursday the global economy is set to shrink roughly 3.0 percent this year, a figure worse than previously estimated as the credit crisis hammers economies.

"Even with the stabilization of financial markets in many developed economies, unemployment and underutilization of capacity continue to rise, putting downward pressure on the global economy," World Bank president Robert Zoellick said in a statement.

The latest growth estimate marked a significant revision to the bank\’s prior estimate of a 1.75 percent contraction in late March.

The growth update came ahead of a two-day meeting of Group of Eight (G8) finance chiefs that opens Friday in Lecce, Italy.

Zoellick called for stepped-up aid to poor countries that are continuing to be battered by the global economic and financial crisis.

"Although growth is expected to revive during the course of 2010, the pace of the recovery is uncertain and the poor in many developing countries will continue to be buffeted by the aftershocks," he said.

"There is much more we need to do in the coming months to mobilize resources to ensure that the poor do not pay for a crisis that is not of their making."

Zoellick urged G8 meetings this month and in July to "follow up on the promises made at the Group of 20 meeting in London in April to restore domestic lending and the international flow of capital," the statement said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...