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- World Bank lowered its global economic forecasts for 2016 and 2017
World Bank lowered its global economic forecasts for 2016 and 2017
The World Bank on Wednesday cut its global economic growth forecast for 2016 and 2017 due to weak growth in major emerging economies.
The World Bank expects that the global economy would grow 2.9% in 2016, down from its June forecast of 3.3%. 2017 global growth was downgraded to 3.1%, down from its June forecast of 3.2%.
"This outlook is expected to be buttressed by recovery in major high-income economies, stabilizing commodity prices, and a continuation of low interest rates. All this does not rule out the fact that there is a low-probability risk of disorderly slowdown in major emerging markets, as U.S. interest rates rise after a long break and the US dollar strengthens, and as a result of geopolitical concerns," World Bank Senior Vice President and Chief Economist Kaushik Basu said in the report.
The global economy was estimated to expand 2.4% in 2015.
China's economy is expected to expand 6.7% in 2016 (6.9% in 2015), down from its June forecast of 7.0%, and 6.5% in 2017, down from its June forecast of 6.9%.
Growth in the U.S. is expected to expand 2.7% in 2016, down from its June forecast of 2.8, and 2.4% in 2017, unchanged from its June forecast.
In the Eurozone, the economy is expected to grow 1.7% in 2016, down from its June forecast of 1.8%, and 1.7% in 2017, up from its June forecast of 1.6%.
In Japan, the economy is expected to expand 1.3% in 2016, down from its June forecast of 1.7%, and 0.9% in 2017, down from its June forecast of 1.2%.
Developing countries are expected to grow by 4.8% in 2016, down from its June forecast of 5.2%.
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