The world economy is expected to grow by 3.3 per cent this year despite the impact of the US sub-prime mortgage crisis, the World Bank has predicted.
The projected worldwide growth figure represents a downturn, however, from last year's rate of 3.6 per cent and the 3.9 per cent growth of 2006.
Expansion for the US economy is expected to stand at 1.9 per cent, but should it should slip into recession, worldwide growth this year could be significantly less marked than the projected figure, the Bank warned in its new Global Economic Prospects 2008 report.
"External demand for the products of developing countries could weaken much more sharply and commodity prices could decline if the faltering US housing market or further financial turmoil were to push the United States into a recession," the report speculated.
However, the US economy is due to rebound in 2009, the bank said, and will help boost global output by 3.6 per cent.
