World bank sees most economies in deeper slump

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The World Bank is warning prospects for the global economy remain "unusually uncertain" despite recent signs of improvement in parts of the world. The bank has cut its 2009 growth forecasts for most economies.

The World Bank released details on individual economies for the first time on Monday. It had recently cut its forecast for the global economy to a contraction of 2.9 percent from a projection for a 1.7 percent decline set in March.

The bank called on the governments around the world for "vigilance" in drawing up exit strategies to reverse the expansionary monetary and fiscal policy once the world economy takes off for recovery.

The bank said in a Global Development Finance report that the unprecedented expansionary policy could result in heavy adverse effects on the future policy if maintained after the recovery.