By J C Suresh
A decline in oil prices, a stronger U.S. economy, and continued low global interest rates will help fuel the growth of the world economy in 2015, says anew study issued by the World Bank Group on January 13.
The Global Economic Prospects report, published every two years, predicts a global economic expansion of 3 per cent for 2015, 3.3 per cent for 2016, and 3.2 per cent in 2017 – a boost following last year’s disappointing 2.6 per cent growth.
At the same time, the report adds, developing countries are expected to surge from last year’s 4.4 per cent growth to 4.8 per cent in 2015 and then strengthen to a more robust 5.4 per cent by 2017.
The developing world and large middle-income countries are, in fact, expected to benefit from lower oil prices. In Brazil, Indonesia, South Africa, and Turkey, the fall in oil prices will help lower inflation and reduce current account deficits. Meanwhile, exporting countries, such as Russia, can expect their economies to contract as a result, prompting opportunities for wide-scale structural reforms.
“Lower oil prices will lead to sizeable real income shifts from oil-exporting to oil-importing developing countries,” said Ayhan Kose, Director of Development Prospects at the World Bank.
“For both exporters and importers, low oil prices present an opportunity to undertake reforms that can increase fiscal resources and help broader environmental objectives.”

