The World Bank has downgraded its forecast for global economic growth – most notably the US forecast. Global growth will amount to 2.9 percent in the current year. In the US, it will continue to go down significantly. After 2.9 percent in 2018, only 2.5 percent are expected for the current year.
In the election year of 2020, it could only be a weak 1.7 percent growth in the largest economy in the world, predicts the World Bank in its report presented yesterday in Washington.
„Global economy lost pace“
The World Bank predicted a slight decline in the already downwardly revised global growth of 3.0 percent last year. „Internationally, trade and production activities have softened, trade disputes remain a major issue, and in some of the major emerging markets, financial markets are under intense pressure,“ the World Bank’s analysis said.
„In early 2018, the global economy fired from all its pipes, but it has lost pace, and the ride could be even more bumpy in the current year,“ said World Bank CEO Kristalina Georgieva. Thus, the fight against extreme poverty in the world – a particular concern of the World Bank – could be influenced.
The growth of industrialized countries will fall to only two percent in the current year, it continues in the forecast, in the developing and emerging countries, growth at 4.2 percent will also be slower. Georgieva warned against over-tightening monetary policy – which could lead to a suppression of capital flows into emerging markets.
