GDP of Europe and Central Asia developing countries to fall by 4.7 percent
08:33, 23 June 2009
WASHINGTON. June 23. KAZINFORM /Aliya Altyngazina/ Amidst global economic recession net private capital inflows to developing countries fell to USD 707 billion in 2008 a sharp drop from a peak of USD 1.2 trillion in 2007. International capital flows are projected to fall further in 2009, to USD 363 billion; Kazinform reports.
According to press-release of the World Bank the world economy is entering an era of slower growth that will require tighter and more effective oversight of the financial system. When China and India are excluded GDP in the remaining developing countries is projected to fall by 1.6%.
Europe and Central Asia has been the region most adversely affected by recent developments. GDP is projected to fall by 4.7 percent in 2009, recovering to grow by about 1.6 percent in 2010.
The CIS area is expected to face a deep recession in 2009, with real GDP contracting by 6.2 percent from growth of 8.6 percent in 2007 and 5.6 percent in 2008.