World Bank: Global growth to slow down

washington — The steadily expanding global economy should remain resilient — at least for a couple of years — says the World Bank.

The agency predicted that global growth will decelerate from a solid 3.1 per cent this year to 3 per cent next year and 2.9 per cent in 2020.

The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.

The World Bank predicts that US growth will register 2.7 per cent in 2018, aided by tax cuts, before slowing to 2.5 per cent next year and 2 per cent in 2020. The Eurozone will go from 2.1 per cent this year to 1.7 per cent next and 1.5 per cent in 2020, the World Bank says.

China’s growth is projected at 6.5 per cent this year, 6.3 per cent in 2019 and 6.2 per cent in 2020.

India is projected to regain its position as the world’s fastest growing major economy advancing 7.3 per cent this fiscal year and 7.5 per cent in the next two “as factors holding back growth in India fade”, according to the World Bank forecasts.

The agency envisions a slump in global commodities prices. It foresees oil prices surging 32.6 per cent this year, then dropping 1.4 per cent in 2019. Excluding energy, commodity prices will grow 5.1 per cent this year but just 0.2 per cent in 2019.