World Bank sees global growth slowing amid trade tensions

January 09, 2019 08:47
China's economic growth may slow to 6.2 percent this year, according to the World Bank. Photo: Bloomberg

The World Bank expects global economic growth to slow to 2.9 percent this year from 3 percent in 2018, with China and the United States suffering the consequences of their bitter trade dispute.

"At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead," Reuters quoted World Bank CEO Kristalina Georgieva as saying in a report released Tuesday.

Growth in the US is likely to slow to 2.5 percent this year from 2.9 percent in 2018, while China is expected to grow at 6.2 percent in the year compared with 6.5 percent in 2018, the World Bank said in its semi-annual Global Economic Prospects report.

Emerging market economies are expected to grow at 4.2 percent this year, while advanced economies are seen expanding at 2 percent, according to the World Bank.

The report comes as Washington and Beijing have been engaged in a bitter trade dispute, imposing tit-for-tat duties on each other’s goods.

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