Developing Economies and Developing Countries

developing economies: When the US finally increases its interest rates from record lows, borrowing will become more costly for emerging and developing economies, according to World Bank latest Global Economic Prospects report published Wednesday, according to Russia Today. Since the US economy continues to recover and interest rates remain low in other major economies, this process won’t be a major blow, however it can create a reduction of capital flows and financial market volatility, said the report. The main reason is a looming US interest rate rise which would spur higher borrowing costs as they try to adapt to low crude prices, said the World Bank. World Bank improves Russia forecast on higher oil Developing countries are expected to grow 4.4 percent this year, likely to reach 5.2 and 5.4 percent in 2016 and 2017. We’ll do all we can to help low- and middle-income countries become more resilient so that they can manage this transition as securely as possible, said World Bank President Jim Yong Kim Wednesday. Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment. (news.financializer.com). As reported in the news.