In a semi-annual report released this week, the World Bank has predicted that the global economy will grow slowly this year, but will pick up speed in 2012 thanks to developing nations.

Wealthier nations are still dealing with the effects of the global economic crisis, the World Bank said, and while the economies of developing nations are picking up some of the slack, they do risk getting ahead of themselves.

"Many developing economies are operating above capacity and are at risk of overheating, most notably in Asia and Latin America," said Hans Timmer, director of development prospects for the World Bank.

The World Bank projected that global growth in 2011 would be at 3.2 percent, a reduction from the bank's prediction of 3.3 percent in January. 2012 and 2013 would be stronger, with current projections at 3.8 percent.

Emerging economies, however, were expected to see growth of 6.3 percent. The global economy and developing economies were projected to experience a slower year for growth in 2011 than they did in 2010.

One caveat issued by the World Bank was the impact of high oil and food prices, which could curb economic growth and negatively impact the poor.

The tsunami and related nuclear crisis in Japan, as well as the political turmoil in the Middle East and North Africa, were expected to affect local economies but not impact the global economy.

Author: Matt Zuvela (dpa, AFP)
Editor: Martin Kuebler