World economy expected to shrink

World Bank President, Robert Zoellick said the global economy will contract much more sharply this year than was predicted three months ago.



The Reuters news agency has quoted Mr. Zoellick saying the world economy is expected to shrink by nearly 3 percent.



This is worse than the 1.75 percent shrinkage predicted in March.



According to Mr. Zoellick, there may be some aspects of recovery between now and next year.



However, he said the global economic climate is very uncertain.



He also said that although some growth may return in coming months most developing countries would still struggle if they do not have increase exports, remittances and foreign direct investment by the end of next year.



The World Bank also estimates that this year’s financing gap for developing countries will be between $350B and $635B