World bank warns of tough year for global economy

The World Bank has released a pessimistic forecast for the global economy in 2008, saying it expects growth to slow to 3.3 per cent, from 3.6 percent last year.

In a report presented this week, the bank warned the effects of the U.S. sub-prime mortgage crisis last summer are far from over – with financial market turmoil set to continue.

And although the World Bank expects robust growth from Russia and other major emerging markets, it says global economic performance is still dependent on what happens in the U.S.