World Bank Sees Overheating Risks With Growth of 3.2%

Emerging-market economies, growing almost three times faster than their developed counterparts, need to speed spending cuts and interest-rate increases as they fight inflation and overheating, the World Bank said.

The Washington-based institution lowered its growth forecast for the world economy this year to 3.2 percent from a January estimate of 3.3 percent, to reflect Japan’s earthquake and political unrest in the Middle East and North Africa. The World Bank left unchanged a prediction for a global rebound to 3.6 percent in 2012.