"The World Bank said Thursday the global economy is set to contract some 3 percent this year, sharper than previously estimated, urging more aid for developing countries amid the spreading crisis. The latest growth estimate marked a significant revision to the bank's prior estimate of a 1.75 percent contraction in late March and came ahead of a two-day meeting of G8 finance ministers that opens Friday in Lecce, Italy. 'Financial markets seem to have broken the fall over past months but there are clear fragilities, and risks remain,' World Bank President Robert Zoellick said in a conference call with reporters...." [Agence France Presse/Factiva]

The NYT adds that "...although the Bank said that it expected growth in developed countries to resume next year, emerging-market countries could feel the effects of what it terms 'aftershocks' for several years.... 'It's quite clear that even if the developed world starts on a path of recovery, for many developing countries, it will take longer,' Zoellick said.... 'Financial markets seem to have broken the fall but there are clear fragilities and risks remain.'... 'Some of these fragile developing economies don't have any cushion,' he added...." [The New York Times/Factiva]

The Washington Post writes that "...during the bank's fiscal year, which ends June 30, lending to low- to middle-income nations more than doubled to a record $33 billion, from $13.2 billion last year. The bank has also handed out a record $13 billion in grants and interest-free loans under a separate program that focuses on the 78 poorest countries. Even with that help, the bank estimates that developing countries could face a financing gap of $350 billion to $635 billion in 2009. Zoellick said he is looking for the G8 finance ministers to uphold their promises to restore the international flow of capital so that 'the poor don't pay for a crisis not of their making.'..." [The Washington Post/Factiva]

Meanwhile, The WSJ reports that "...a global recovery in 2010 may expand at a 2.4 percent clip, according to a briefing paper by the International Monetary Fund (IMF), which credits the faster-than-expected rebound to stimulus spending by developed nations....The estimate of 2010 world growth at 2.4 percent compares to the Fund's April prediction of 1.9 percent.... In April, the IMF also estimated the global economy would shrink by 1.3 percent in 2009...." [The Wall Street Journal/Factiva]