World Bank sees tough times for emerging markets

Tokyo

THE World Bank has predicted that emerging economies will face "tough challenges" this year from a likely rise in global interest rates, currency swings and the prospect of reduced capital flows. In its latest Global Economic Prospects report, it added its voice to the chorus of warnings about the potentially disruptive impact of monetary policy "normalisation" in the US and elsewhere, saying this process could "especially hurt" certain emerging markets.

Asia-Pacific's growth is projected to ease in 2015, but remain stable for two years thereafter, with Russia and Brazil bearing the brunt of the emerging-economy slowdown.