November 23, 2024 03:34 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
'Third World War has begun:' Ex-Ukraine military commander-in-chief Valery Zaluzhny | UK-India Free Trade Agreement negotiations to resume in early 2024 | UK can arrest Benjamin Netanyahu if he visits country based on ICC warrant | Centre to send over 10,000 additional soldiers to violence-hit Manipur amid fresh violence | Chhattisgarh: 10 Maoists killed during encounter with security forces in Sukma
World Bank downgrades global growth forecasts, poorest countries hardest hit

World Bank downgrades global growth forecasts, poorest countries hardest hit

| @indiablooms | 07 Jun 2019, 04:12 am

New York, June 7 (IBNS): The World Bank has lowered its expectations of global economic growth for this year in a new report. It says that, although the picture for poorer countries is expected to stabilize in 2020, economic momentum remains weak.

The risks to emerging and developing economies include rising trade barriers, slow investment, and economic slowdowns in richer countries. “Stronger economic growth is essential to reducing poverty and improving living standards,” said World Bank Group President, David Malpass, in a statement released on Tuesday.

It is urgent, he added, that countries make significant reforms to improve the climate for business, and attract investment. “They also need to make debt management and transparency a high priority so that new debt adds to growth and investment.”

All regions affected by slowdown

Amongst the developed economies, the Euro Area will see the biggest slowdown, due to weaker exports and investment, with growth at around 1.4% in 2020-2021. As for the United States, a growth figure of 2.5% in 2019, will drop to 1.7% next year.

In emerging markets, the projected growth rate of 4% for 2019 represents a four-year low, and several economies are coping with financial stress and political uncertainty. However, A recovery is expected next year, with a forecasted rate of 4.6% for 2020. The World Bank recommends in the report that these countries need to strike a careful balance between borrowing to promote growth and avoiding risks associated with excessive borrowing.

“While almost every economy faces headwinds, the poorest countries face the most daunting challenges because of fragility, geographic isolation, and entrenched poverty,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu. “Unless they can get onto a faster growth trajectory, the goal of lowering extreme poverty under 3 percent by 2030 will remain unreachable.”

The warnings from the World Bank come just days after the UN Department of Economic and Social Affairs published its mid-year World Economic Situation and Prospects (WESP) report, which finds that all major developed economies, and most developing regions, have weakened prospects for growth.

World Bank/Rob Beechey
 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.