THE World Bank in its Global economic prospects report revealed that due to wearisome slow economic recovery in developed nations the path to global economic recovery is bumpy and sharply cut its outlook for world growth in 2013.

It has forecasted that global gross domestic product will inch up 2.4% this year, from 2.3% in 2012. In its last forecast in June, the bank projected global growth would reach 3.0% in 2013.The Bank warned that a drawn out political battle in the United States over raising the government's borrowing limit and spending cuts could hit growth, spark a loss of confidence in the US dollar and unnerve financial markets.

The growth in advanced economies should reach a very weak 1.3% this year, weighed down by spending cuts, high unemployment and weak consumer and business confidence. Activity should strengthen next year to 2% and 2.3% in 2015.While financial markets were buoyed by measures adopted last year to address the euro-zone debt crisis, it urged Washington to outline a credible medium-term fiscal plan that "avoids episodes of brinkmanship" over raising the country's self-imposed debt ceiling.

The White House and the US Congress did agree at the beginning of January to extend tax cuts for American families earning less than $450,000 a year as part of a deal over the so called fiscal cliff. But lawmakers must still navigate the debt limit as well as thrash out a deal over drastic automatic spending cuts that were postponed until March 1.