Global GDP will contract to 3.3 %

Singapore and other high income countries are expected to slow down global GDP growth in 2011, World Bank said.

Global GDP came in at 3.9% in 2010. It is expected to slow down at 3.3% in 2011 before increasing again at 3.6% in 2012, according to the World Bank.

Prospects in high-income countries' economies, many of which were at the center of the financial boom and bust, will continue to be weighed down by banking-sector restructuring, high consumer debt and a right-sizing of economic sectors that grew unsustainably large during the boom period, according to the World Bank.

Carry-trade flows are expected to decline, as monetary policy tightens in high-income countries and interest rates rise.