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World Bank maintains global growth forecasts, warns of considerable downside risks

Source: Xinhua| 2018-06-06 04:35:12|Editor: yan
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WASHINGTON, June 5 (Xinhua) -- The World Bank on Tuesday 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 said the global economy would grow 3.1 percent in 2018 before slowing to 3 percent in 2019, unchanged from its previous forecasts in January.

Growth in advanced economies is expected to moderate slightly to 2.2 percent in 2018 and further slow down to 2 percent 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 percent in 2018 before reaching 4.7 percent in 2019, as "the recovery in commodity exporters matures and commodity prices level off following this year's increase."

The World Bank upgraded its forecast for China's economic growth in 2018 to 6.5 percent, 0.1 percentage point higher than its January forecast. But the growth is estimated to edge down to 6.3 percent in 2019, as regulatory and macroprudential policies are expected to tighten and fiscal policy is anticipated to become less accommodative.

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