Washington, June 6: The World Bank has kept its growth forecasts for the global economy unchanged for this year and next year, but warned of a combination of considerable downside risks including escalating trade protectionism.
In its newly-released Global Economic Prospects report, the World Bank on Tuesday said the global economy would grow 3.1 per cent in 2018 before slowing to 3 per cent in 2019, unchanged from its previous forecasts in January, Xinhua reported.
Growth in advanced economies is expected to moderate slightly to 2.2 per cent in 2018 and further slow down to 2 per cent next year, as central banks gradually remove monetary stimulus, according to the report. Growth in emerging market and developing economies is projected to strengthen to 4.5 per cent in 2018 before reaching 4.7 per cent in 2019. The Washington-based international lender also warned that global economic growth is facing "considerable downside risks."
"The possibility of disorderly financial market volatility has increased, and the vulnerability of some emerging market and developing economies to such disruption has risen," the World Bank said, noting trade protectionist sentiment has also mounted and policy uncertainty and geopolitical risks remain elevated. "The probability of an abrupt slowdown in global growth has risen and could increase further if one or several downside risks materialize," said the lender. (IANS)