Global economy at a 'turning point' - World Bank

The World Bank has said the global economy is at a "turning point", as it forecasts stronger growth for 2014. In its annual report on the world economy, the bank said richer countries appeared to be "finally turning a corner" after the financial crisis. That is expected to support stronger growth in developing economies. But it warned growth prospects "remained vulnerable" to the impact of the withdrawal of economic stimulus measures in the US. The World Bank says that as the Federal Reserve cuts back its efforts to stimulate the US economy it's likely to push up global interest rates which could hit developing economies. A World Bank economist acknowledged that Brazil, Turkey, India and Indonesia are among the countries that could be vulnerable. The US Federal Reserve has already begun to wind down its monthly bond-buying programme, previously set at $85bn a month. There is concern this could push up global interest rates, which could affect the flow of money in and out of developing countries and lead to more volatile international financial markets The bank forecasts that global GDP will grow by 3.2% this year, up from 2.4% in 2013, with much of the pick-up coming from developed economies. Developing nations will grow by 5.3% this year, up from 4.8% in 2013.