Citing tepid growth in emerging economies, including China and India, and persistently poor performance of industrialized nations, the World Bank has cut its global growth forecasts for this year and next. The move triggered a stock market plunge in Japan and an initially sharp reaction in Europe. "While there are markers of hope in the financial sector, the slowdown in the real economy is turning out to be unusually protracted. This is reflected in the stubbornly high unemployment in industrialized nations, with unemployment in the eurozone actually rising, and in the slowing growth in emerging economies," said World Bank chief economist Kaushik Basu.

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