World Bank cuts 2016 global growth forecast to 2.9 percentStaff writer ▼ |
Prediction Global Economic Prospects Report
The World Bank cut global growth forecast for 2016 down to 2.9 percent, saying that weak growth among major emerging markets will weigh on global growth in 2016.
Developing economies are forecast to expand by 4.8 percent in 2016, less than expected earlier but up from a post-crisis low of 4.3 percent in the year just ended; advanced economies are expected to grow 2.1 percent this year, also lower than its June forest but up from the estimated 1.6 percent increase in 2015.
Downside risks, including slower growth, financial stress around the U.S. Federal Reserve tightening cycle, weak commodities prices, and heightened geopolitical tensions, have become increasingly centered on emerging and developing countries, said the report.
The emerging economies seem to be coming apart, with Brazil and Russia expected to remain in recession in 2016, while China and India forecasted to grow around 7 percent. China is forecasted to grow 6.7 percent in 2016 and 6.5 percent in 2017, lower than the estimated 6.9 percent growth in 2015. ■