The global economic growth is to slow down to 2.9 per cent in 2019 from 3 per cent in 2018, the World Bank has predicted.
According to the January 2019 Global Economic Prospects report., softening international trade and manufacturing activity, elevated trade tensions and substantial financial market pressures in some large emerging markets are among the factors behind this.
“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.”
While growth in advanced economies is to slow down to 2 per cent, the growth in emerging market and developing economies is to be affected by external demand, rising borrowing costs, and persistent policy uncertainties.
“Robust economic growth is essential to reducing poverty and boosting shared prosperity,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions, Ceyla Pazarbasioglu.
“As the outlook for the global economy has darkened, strengthening contingency planning, facilitating trade, and improving access to finance will be crucial to navigate current uncertainties and invigorate growth.”