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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 Tuesday cut its global economic growth forecast for 2016 and 2017 due to weak growth in advanced economies, low commodity prices, weak global trade, and diminishing capital flows.
The World Bank expects that the global economy would grow 2.4% in 2016, down from January forecast of 2.9%. 2017 global growth was downgraded to 2.8%, down from its January forecast of 3.1%.
"As advanced economies struggle to gain traction, most economies in South and East Asia are growing solidly, as are commodity-importing emerging economies around the world," World Bank Senior Vice President and Chief Economist Kaushik Basu said.
China's economy is expected to expand 6.7% in 2016 and 6.5% in 2017, both unchanged from January forecasts.
Growth in the U.S. is expected to expand 1.9% in 2016, down from January forecast of 2.7, and 2.2% in 2017, down from January forecast of 2.4.
In the Eurozone, the economy is expected to grow 1.6% in 2016, down from January forecast of 1.7%, and 1.6% in 2017, down from January forecast of 1.7%.
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