World Bank: Most economies in deeper slump

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Play VideoWorld bank sees most economies in deeper slump

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's "2009 Global Development Finance" report details individual economies for the first time.

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 world economy is expected to show the worst economic indicators since World War Two.

Developing economies are expected to increase 1.2 percent, a sharp drop from 8 percent in 2007 and 6 percent in 2008.

Except for China and India, the GDP of developing economies is expected to decline by 1.6 percent.

Unemployment and the number of poor people will further increase. But economists believe the world economy is already in the recovery stage, although the process is slow and hard.

The report says China and India contribute the most to the world economy. China's economy is expected to grow 7.2 percent this year and 7.7 percent next year. The forecast for India is 5 percent and 8 percent.

The report says developing nations are expected to drive the global economy out of the recession. Forecasted growth for 2010 is 4.4 percent,and 5.7 percent for 2011.

The World Bank also stresses the need for financial sector reform and support for the poorest countries. The bank says this must take place for a sustainable, complete recovery in the global economy.