The World Bank has warned of an impending global economic slowdown, sharply cutting its growth forecast and cautioning developing countries to prepare for shocks.

The bank on Wednesday lowered its growth forecast for developing countries this year to 5.4 percent from 6.2 percent, and for developed countries to 1.4 percent from 2.7 percent.

It forecast a contraction this year for the 17 countries that use the euro currency, cutting their growth forecast to -0.3 percent from 1.8 percent.

Source AP