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World Bank Cuts Global Growth Forecast

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http://www.bbc.co.uk/news/business-30802166

The World Bank has cut its global growth forecast, warning the US alone cannot drive an economic recovery.

In its bi-annual report, the Bank predicted global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively.

"The global economy is running on a single engine...The American one. This does not make for a rosy outlook," chief economist Kaushik Basu warned.

However, it said lower oil prices would benefit some countries.

"The lower oil price, which is expected to persist through 2015, is lowering inflation worldwide and is likely to delay interest rate hikes in rich countries," said Mr Basu.

"This creates a window of opportunity for oil-importing countries, such as China and India; we expect India's growth to rise to 7% by 2016," he added.

However, the Bank warned that lower oil prices would hurt growth in countries which export oil, such as Russia, weighing on its global growth predicitions.

The World Bank expects the Russian economy to contract by 2.9% this year, and to grow just 0.1% in 2016.

The US is over 20% of the global economy, and it's too big to fail/bail. China is slowly catching up but then we end up with the same problem one economy driving the global economy.

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