World Bank downgrades global economic growth forecast
The World Bank downgraded its global economic growth forecast to 2.9% from 3% in 2019 due to a decline in trade and investment. The World Bank’s January 2019 World Economic Outlook is titled 'Global Economic Prospects. Darkening Skies.'
"In all, global growth is projected to moderate from a downwardly revised 3% in 2018 to 2.9% in 2019 and 2.8% in 2020-21, as economic slack dissipates, monetary policy accommodation in advanced economies is removed, and global trade gradually slows," the WB report says.
According to the report, the growth rate of the economy in developed countries will slow down this year to 2%.
"The recovery in emerging market and developing economies’ (EMDE) activity has stagnated. Aggregate growth in EMDEs edged down to an estimated 4.2% in 2018. 0.3 percentage point below previous projections against the backdrop of a substantial strengthening of the U.S. dollar, weakening capital flows, heightened trade tensions, and moderating global manufacturing and trade," TASS cited the report as saying.