国际英语新闻：Global recovery gains strength, but challenges remain: World Bank

WASHINGTON, Jan. 12 (Xinhua) -- The global economy is growing from a post-crisis bounce-back phase of the recovery to a slower but solid pace in the coming two years, with developing countries contributing almost half of the global growth, said the World Bank on Wednesday.

According to the Global Economic Prospects 2010, an annual report released by the 187-member international financial institution, the global economy is expected to grow 3.3 percent this year and 3.6 percent in 2012. It grew 3.9 percent in 2010.

NEW PHASE OF RECOVERY

"The world economy is entering into a new phase of recovery," Justin Yifu Lin, the World Bank's chief economist and senior vice president of development economics, told reporters in Washington.

"On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions," said Lin.

According to the report, developing countries, which were the leading engine of the global recovery after the financial crisis, are expected to grow 7 percent in 2010, 6 percent in 2011 and 6.1 percent in 2012.

"They will continue to outstrip growth in high-income countries, which is projected at 2.8 percent in 2010, 2.4 percent in 2011 and 2.7 percent in 2012," wrote the report.

The World Bank said that net international equity and bond flows to developing countries rose sharply in 2010, rising by 42 percent and 30 percent respectively, with nine countries receiving the bulk of the increase in inflows.

Foreign direct investment to developing countries rose a more modest 16 percent in 2010, reaching 410 billion dollars after falling 40 percent in 2009. And important part of the rebound is due to rising South-South investments, particularly originating in Asia.

For high-income countries, the recovery is relatively sluggish.

The U.S. economy, which is the largest single economy in the world, is expected to grow 2.8 percent in 2010 as well as 2011 and 2.9 percent in 2012. Japan is forecasted to grow at 4.4 percent in 2010, but fall to 1.8 percent before returning to 2.0 percent in 2012.

The eurozone countries, which are still struggling to fight the sovereign debt crisis, are expected to grow at a rate of 1.7 percent in 2010, 1.4 percent in 2011 and 2.0 percent in 2012.

Most low-income countries saw trade gains in 2010 and, overall, their GDP rose 5.3 percent in 2010. This was supported by a pick-up in commodity prices, and to a lesser extent in remittances and tourism. Their prospects are projected to strengthen even more, with growth of 6.5 percent in both 2011 and 2012, respectively.