Amman, Global economic growth is projected to soften from a downwardly revised 3 percent in 2018 to 2.9 percent in 2019 amid rising downside risks to the outlook, the World Bank (WB) said on Tuesday.
In its semi-annual "Global Economic Prospects" report, the WB said that international trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures".
"At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead", said World Bank Chief Executive Officer Kristalina Georgieva.
"As economic and financial headwinds intensify for emerging and developing countries, the world's progress in reducing extreme poverty could be jeopardized. To keep the momentum, countries need to invest in people, foster inclusive growth, and build resilient societies." she added.
Growth in the United Sates is expected to slow to 2.5 per cent this year from 2.9 per cent last year, while China's economic growth will slow to 6.2 percent in 2019 from 6.5 percent in 2018 as domestic and external rebalancing continue.
Growth among advanced economies is forecast to drop to 2 percent this year, the report said, adding that slowing external demand, rising borrowing costs, and persistent policy uncertainties are expected to weigh on the outlook for emerging market and developing economies. Growth for this group is anticipated to hold steady at a weaker-than-expected 4.2 percent this year.
Source: Jordan News Agency