3/21/2017

Economic, Financial, Political & Health: THE WORLD BANK PROJECTED INCREASE IN GLOBAL ECONOMIC GROWTH

THE WORLD BANK PROJECTED INCREASE IN GLOBAL ECONOMIC GROWTH



World Bank
In its latest report, the World Bank stated that if it sees a moderate recovery in the coming years, the global economy is predicted with growth rates in 2017 and 2018, respectively 2.7% and 2.9%. The World Bank's global economic outlook report says the rate of growth in 2017 is faster than the 2.3% growth forecast in 2016, but 0.1 percentage points lower than the projection made in June 2016.

Washington-based lenders link slightly accelerated growth in emerging economies and developing economies, as they are expected to see lessening of the situation that makes growth more difficult, especially the strengthening of commodity prices. The Bank estimates emerging and emerging economies, growing 4.2% in 2017 and 4.6% by 2018, by 3.4% from 2016.

The economies of those countries are estimated to contribute 1.6% to global growth in 2017 or about 60% of global growth for the first time since 2013. The World Bank maintains its forecast for China's economic growth unchanged with growth in 2017 of 6, 5%, and for the year 2018 of 6.3%. Then, China's economy will continue its sustained growth, as the country is re-balancing from manufacturing to services, despite renewed concerns for the property market.

In contrast it is with relatively mild growth in emerging economies. According to the World Bank, developed countries will continue moderate growth in the coming years, and developed countries continue to suffer from weak underlying growth as well as low inflation, while uncertainty about the future policy direction is increasing.

The Bank forecasts developed countries grow 1.8% both in 2017 and 2018, while slightly up from 1.6 per cent in 2016. Meanwhile, the US economy is expected to grow 2.2% in 2017 and 2, 1% in 2018. Nevertheless, the country's policy is likely to undergo a change under the new government, which could have significant implications for the United States, and the global economy.
Grafiks
Uncertain policies, together with financial market disruptions amid tighter global financing conditions, may strengthen in the medium term as protectionist tendencies grow, allowing slower growth potential and sustained vulnerability in several emerging economies. 

The World Bank calls on developed countries to introduce more favorable fiscal policies, while also advancing emerging economies to find the right balance between fiscal adjustments, measures to reduce vulnerability, and growth-oriented reforms.

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