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- World Bank lowered its global economic forecast for 2015
World Bank lowered its global economic forecast for 2015
The World Bank cut its global economic growth forecast for 2015 and 2016 on Thursday, saying that developing countries will face problems from rising U.S. interest rates and lower commodity prices. The World Bank said that the Fed should wait until the next year before raising its interest rate.
The International Monetary Fund (IMF) also warned last week that the Fed should delay its interest rate hike until the first half of 2016.
The World Bank expects that the global economy would grow 2.8% in 2015, down from its January forecast of 3.0%. The global growth was left unchanged at 3.3% in 2016 and at 3.2% in 2017.
China's economy is expected to expand 7.1% in 2015 (7.4% in 2014), 7% in 2016 and 6.9% in 2017.
Growth in the U.S. is expected to accelerate to 2.7% in 2015, down from its January forecast of 3.2, to 2.8% in 2016, down from its January forecast of 3.0%, and to 2.4% in 2017. The World Bank said that a stronger U.S. dollar slowed the U.S. economy more than expected.
In the Eurozone, the economy is expected to grow 1.5% in 2015, up from its January forecast of 1.1%, 1.8% in 2016, up from its January forecast of 1.6%, and 1.6% in 2017.
In Japan, the economy is expected to expand at 1.1% in 2015, down from its January forecast of 1.2%, at 1.7% in 2016 and at 1.2% in 2017.
Developing countries are expected to grow by 4.4% in 2015, by 5.2% in 2016, and by 5.4% in 2017.
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