Global Economy at Turning Point

The World Bank has said that the global economy is at “turning point” as it forecasts stronger growth for 2014.

The bank stated, in its annual report on the world economy, that richer countries appeared to be “finally turning a corner” after the financial crisis.

That is expected to support stronger growth in developing economies.

However, it warned growth prospects “remained vulnerable” due to the impact of withdrawal of economic stimulus measures in the US.

Reports state that the US Federal Reserve has already begun winding down its monthly bond-buying programme which was previously set at $85bn (£52bn) a month.

There is concern that this could push up global interest rates, which affects the flow of money in and out of developing countries, and lead to more volatile international financial markets.

The World Bank has warned that some developing countries “could face crisis risks” if the unwinding of stimulus measures was accompanied by market volatility.

Although the bank forecasts that global GDP will grow by 3.2% this year, up from 2.4% in 2013, with much of the pick-up coming from developed economies.

Developing nations will grow by 5.3% this year, up from 4.8% in 2013.