Global economic recovery led by rebound in the United States has improved the growth prospects in developing countries like India, World Bank President James Wolfensohn said on Friday.
"Since we met in spring, global recovery has gained momentum led by rebound in the United States," he said adding this has accelerated world trade growth to 7 per cent improving growth prospects in developing countries.
The 7 per cent growth in world trade is significant particularly after its weak performance in the last two years, he said in a note prepared for the bank's development committee meeting in Dubai on Monday.
The recovery has also helped in abating of the downslide risks, he said, adding: "These developments together with modest gains in non-oil commodity prices and low interest rates combined with falling spreads have boosted the short-term prospects of developing countries."
Though the economic prospects are good in the short-term, it remained 'fragile' in the long-term because of imbalances and structural problems in the rich countries, he said.
These imbalances and structural problems could trigger the geo-political shocks, reducing the manoeuverability in macro-economic policies, he said.
Wolfensohn regretted the progress in tackling global poverty was 'agonisingly slow' and said there was a need to step on the accelerator.
It was 18 months since the historic agreement signed on reducing global poverty. Yet there was very little movement forward, he said.