Lending forecast at £25bn for 2016 as developing countries struggle to cope with weakening global economy
Ahead of its half-yearly spring meeting in Washington later this week, the Bank said it expected to lend more than $150bn (£105bn) in the four years from 2013 – a period when global economic activity repeatedly failed to match expectations.
The Bank said its growth forecast of 2.9% for 2016 already looked under threat after a deterioration in the outlook since the start of the year, adding that it was increasing its financial help to both middle-income and the least-developed countries.
Those developing countries that rely heavily on exports of commodities have been hard hit over the past two years by the slowdown in China, which has led to a crash in the cost of oil and industrial metals.
“We are in a global economy where growth is expected to remain weak, so it is critically important that the World Bank play our traditional role of helping developing countries accelerate growth,” said Jim Yong Kim, the bank’s president.
“We have an historic opportunity to end extreme poverty in the world by 2030 but the only way we can achieve this goal is if developing countries – from middle-income to low-income nations – get back on the path of faster growth that helps the poorest and most vulnerable.”
The global crisis of 2008-09 led to a surge in World Bank lending to middle-income countries that struggled as trade flows and industrial production fell at rates similar to those in the early stages of the Great Depression.
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