WB forecasts 2.6% global growth

Source: Xinhua | 2019-06-06

The World Bank on Tuesday lowered its global growth forecast for 2019 to 2.6 percent, while maintaining its growth projection for China at 6.2 percent, according to the newly released semi-annual Global Economic Prospects report.

“Heightened policy uncertainty, including a recent re-escalation of trade tensions between major economies, has been accompanied by a deceleration in global investment and a decline in confidence,” the report said.

Global gross domestic product growth in 2019 was downgraded to a “weaker-than-expected” 2.6 percent, 0.3 percentage points below previous estimate in January, the report said. Global growth is projected to inch up to 2.7 percent in 2020.

“The global economic outlook, in both the near- and long-term, is confronting substantial challenges,” World Bank President David Malpass said in a teleconference, noting that downside risks to growth include rising trade barriers, a buildup of government debt and deepening slowdowns.

Growth among emerging market and developing economies is projected to fall to a four-year low of 4 percent in 2019, as a number of economies are coping with the impact of financial stress and political uncertainty, the report said. Growth is forecast to recover to 4.6 percent in 2020.

The World Bank maintained its growth projection for China this year at 6.2 percent, citing “a deceleration in global trade, stable commodity prices, supportive global financial conditions and the ability of authorities to calibrate supportive monetary and fiscal policies to address external challenges and other headwinds.”

Growth among advanced economies is likely to slow to 1.7 percent in 2019, with the eurozone growth projected at 1.2 percent, the report said.