Uncertainty dims global outlook
10 June, 2017
For the first time in four years, the latest edition of the World Bank's Global Economic Prospects has not downgraded the growth forecast, eventhough it admitted that new problems have emerged, news wires reported. Rising trade protectionism and policy uncertainty, primarily in the US under President Donald Trump, pose important cautions for the outlook. The UK exit from the EU also poses risks, especially given the unknown outcome.
The report said that "despite substantial policy uncertainty," the global economy still is expected to grow by 2.7% for 2017, rising to 2.9 % in 2018 and 2019. The seven largest emerging market economies - China, Brazil, Mexico, India, Indonesia, Turkey and Russia - remain the key engine for the world economy. Emerging market and developing economies are expected to grow 4.1% this year, led by India, which is expected to expand by 7.1%, and China, at 6.5%. Meanwhile, Russia and Brazil are expected to return to growth after contracting for the past two years.
Advanced economies are continuing to grow but at a more modest pace, with the US expected to expand by 2.1%, the euro area by 1.7% and Japan by just 1.5%.