Warning of an increased likelihood for a worsening of the Eurozone debt crisis, the World Bank today announced it was scaling back its earlier growth predictions for the largest economies. In its report, the World Bank said Europe was probably already in recession and should the crisis deteriorate further, global economic forecasts would be significantly lower.
The World Bank predicted world economic growth of 2.5 percent in 2012 and 3.1 percent in 2013, well below the 3.6 percent growth for each year projected in June.
“We think it is now important to think through not only slower growth but sharp deteriorations, as a prudent measure,” said Hans Timmer, director of development prospects at the bank.
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