The World Bank has projected slow but steady growth for the global economy in 2011 as the world moves from the recovery phase of a recession.
In its latest report, Global Economic Prospects for 2011, the World Bank said developing countries are expected to fare better than developed economies, contributing almost half of global growth.
Developing countries are projected to grow by 6% in 2011 and 6.1% in 2012, compared to 3.3% growth for developed countries in 2011 up to 3.6% in 2012.
GDP for sub-Saharan countries, outside South Africa, is estimated to rise by 6.4% in 2011 and 6.2% in 2012 as developing countries continue to outstrip growth in developed countries.
This builds up from trade gains in most low-income countries in 2010 supported by a pick-up in commodity prices, and to a lesser extent in remittances and tourism.
In a press release, the World Bankâ€™s Chief Economist and Senior Vice President for Development Economics, Justin Yifu Lin, said 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.
A local economist with the Labor and Economic Development Research Institute, Mr. Prosper Chitambara, concurred that the projections are indeed a reflection of the global power shift from developing countries.
â€œYou will find it interesting that developing countries are going to outstrip developed countries by contributing about 50% of world gross domestic product. I think we will see a significant change in terms of global economic power shift for the next 2-3 decades.â€
Locally, government estimated the economy grew by 8.1% in 2010, accelerating to 9.1% in 2011 buoyed by revenue from mining and agriculture.