World Bank lower forecast for global growth to 2.9%
The World Bank lowered its forecast on global economic growth. With decelerating growth rates of trade and investment as well as increasing interest rate, it is predicted that economic growth rate will be slowing down this year, especially in emerging markets. The bank cut its outlook of global economic growth down by 0.1 % to 2.9%, which is 0.1% lower than the estimated 3% for last year. The latest forecast for growth in emerging markets is only 4.2%, 0.5% lower than the prediction made last June.
The growth of Eurozone is upgraded 0.1% from last year to 1.6% this year; the forecast of growth in China remained unchanged at 6.5%; the growth rate of the US will predictably increase by 0.8% from last year to 2.5% this year.
According to the World Bank, global economy is about to face a bleak prospect. Stretching global financial conditions, slowing industrial production rate, aggravated trade tensions, and stressed conditions for developing markets are all influential factors for the emerging markets and their economies to lose recovery momentum.