Growth to slow: World Bank

AUCKLAND: The World Bank is predicting global growth will slow this year due to headwinds that include tightening financing conditions, moderating industrial production and intensifying trade tensions.

In its semiannual report on the outlook for the global economy entitled ‘‘Darkening Skies,’’ the World Bank says global growth may slow to 2.9% in 2019 from an estimated 3% last year and slow further to 2.8% in 2020.

‘‘Moderating activity and heightened risks are clouding global economic prospects. International trade and investment have softened, trade tensions have intensified and some large emerging market and developing economies are experiencing substantial financial market pressures,’’ it says.

It forecasts that growth in the US economy will slow from 2.9% in 2018 to 2.5% this year and 1.7% in 2020. Growth in Europe will slide from 1.9% to 1.6%.

It predicts China’s economy will slow from 6.5% in 2018 to 6.2% this year.

The bank says growth in emerging markets has lost momentum ‘‘with a weakerthanexpected recovery in commodity exporters accompanied by a deceleration in commodity importers’’ and downside risks have become more acute.

‘‘Disorderly financial market developments could disrupt activity in the affected economies and lead to contagion effects,’’ the report says.

‘‘Trade disputes could escalate or become more widespread, denting activity in the involved economies and leading to negative global spillovers.’’

The report coincides with talks in Beijing between US and Chinese officials on their countries’ trade dispute.

The World Bank report did not provide any specific economic forecasts for Australia or New Zealand. — BusinessDesk