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World Bank: Global economy at turning point

The global economy is at a "turning point", the World Bank has said, as it forecasts stronger growth for 2014. In its annual report on the world economy, the bank said richer countries appeared to be "finally turning a corner" after the financial crisis. That is expected to support stronger growth in developing economies. But it warned growth prospects "remained vulnerable" to the impact of the withdrawal of economic stimulus measures in the US. The US Federal Reserve has already begun to wind down its monthly bond-buying programme, previously set at $85bn (£52bn) a month. 'Crisis risks' There is concern this could push up global interest rates, which could affect the flow of money in and out of developing countries and lead to more volatile international financial markets. The World Bank warned that some developing countries "could face crisis risks" if the unwinding of stimulus measures was accompanied by market volatility. "Growth appears to be strengthening in both high-income and developing countries, but downside risks continue to threaten the global economic recovery," said World Bank group president Jim Yong Kim. "The performance of advanced economies is gaining momentum, and this should support stronger growth in developing countries in the months ahead. Still, to accelerate poverty reduction, developing nations will need to adopt structural reforms that promote job creation, strengthen financial systems, and shore up social safety nets." The bank forecasts that global GDP will grow by 3.2% this year, up from 2.4% in 2013, with much of the pick-up coming from developed economies. Developing nations will grow by 5.3% this year, up from 4.8% in 2013. In an interview with BBC economics correspondent Andrew Walker, World Bank economist Andrew Burns acknowledged that Brazil, Turkey, India and Indonesia were among the countries that could be vulnerable to the impact of US stimulus withdrawal. However he also noted that the first concrete steps taken by the Federal Reserve to cut back its programme of buying financial assets last month did not severely disturb the markets.

Drop in sea piracy helped by big Somali improvement, says watchdog

Piracy at sea is at its lowest level in six years, with 264 attacks recorded - a 40% drop since Somali piracy peaked in 2011, a maritime watchdog has said. There were only 15 incidents off Somalia last year, the International Maritime Bureau (IMB) said. This is down from 75 in 2012, and 237 in 2011, its records show. Armed guards on ships, international navy patrols and the "stabilising influence" of Somalia's government had helped deter pirates, the IMB said. "The single biggest reason for the drop in worldwide piracy is the decrease in Somali piracy off the coast of East Africa," Pottengal Mukundan, IMB's director, said in a statement. "It is imperative to continue combined international efforts to tackle Somali piracy. Any complacency at this stage could re-kindle pirate activity," he said. IMB's annual global piracy report said more than 300 people were taken hostage at sea in 2013 and 21 were injured, nearly all with guns or knives. Indonesia saw the most pirate attacks last year, accounting for more than 50% of all incidents. But the report said they were "low-level opportunistic thefts, not to be compared with the more serious incidents off Africa". Piracy off West Africa made up 19% of attacks worldwide last year, the report said. Nigerian pirates, who accounted for 31 of the region's 51 attacks, were "particularly violent", killing one crew member, and kidnapping 36 people to hold onshore for ransom, the IMB said. In November, a UN and World Bank report said pirates operating off the Horn of Africa, which are some of the world's busiest shipping and humanitarian aid routes, had netted more than $400m (£251m) in ransom money between 2005 and 2012.

Ballon d'or 2014

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