Inflation will stunt global and EM growth - World Bank

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Global growth is set to fall 1% this year as developing nations feel the pinch of rising inflation, a new World Bank study reveals.

The Global Development Finance 2008 report shows world GDP dipping from 3.7% in 2007 to 2.7% this year, with growth in developing countries slowing from 7.8% to 6.5%. Private capital flows to emerging markets, which hit a record $1trn last year, is expected to fall to about $800bn. While the flows would still be at the second highest level ever, the bulk is heading to the largest of the developing nations – the BRIC nations of Brazil, Russia, India and China. The World Bank says the poorest nations will continue to remain reliant on official aid, which fell $107.1bn in 2005 to $103.7b...

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