Date
24 May 2017
A broad-based slowdown in emerging markets is offsetting healthier growth in Europe and Japan, the World Bank said. Photo: Bloomberg
A broad-based slowdown in emerging markets is offsetting healthier growth in Europe and Japan, the World Bank said. Photo: Bloomberg

World Bank pares 2015 global growth forecast to 2.8%

The World Bank has trimmed its outlook for global economic growth this year to 2.8 percent, 0.2 percentage point slower than its estimate in January, the Wall Street Journal reported.

“Global growth has yet again disappointed,” World Bank chief economist Kaushik Basu was quoted as saying.

The downgrade results from the broad-based slowdown in emerging markets and softer output in the United States, according to the newspaper.

In its latest Global Economic Prospects report, the bank said sharp contractions in Brazil and Russia, alongside weaker growth in Turkey, Indonesia and scores of other developing economies, are offsetting healthier growth in Europe and Japan.

For 2016, it expects global economic growth to accelerate to 3.3 percent, barring a major impact of the US Federal Reserve rake hikes on emerging markets.

The forecast also assumes recoveries in the eurozone and Japan take hold, the newspaper said.

The bank said also downgraded prospects for the US economy this year to 2.7 percent, down 0.5 percentage point from its earlier forecast. It said the US economy is gathering steam, but a brutal winter reduced output in the first quarter.

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