World Bank forecasts global economic growth at 3.1pc

|     Danial Norjidi     |

 

THE World Bank in its January 2018 Global Economic Prospects report has forecast global economic growth to edge up to 3.1 per cent in 2018, with 6.2 per cent growth in the East Asia and Pacific region.

According to a press release, the World Bank forecasts the 3.1 per cent global economic growth in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues, and as commodity-exporting developing economies benefit from firming commodity prices. The press release noted, however, that this is largely seen as a short-term upswing.

Growth in advanced economies is expected to moderate slightly to 2.2 per cent in 2018, as central banks gradually remove their post-crisis accommodation and as an upturn in investment levels off.

The press release noted that growth in emerging market and developing economies as a whole is projected to strengthen to 4.5 per cent in 2018, as activity in commodity exporters continues to recover.

World Bank Group President Jim Yong Kim said, “The broad-based recovery in global growth is encouraging, but this is no time for complacency.

“This is a great opportunity to invest in human and physical capital. If policy makers around the world focus on these key investments, they can increase their countries’ productivity, boost workforce participation, and move closer to the goals of ending extreme poverty and boosting shared prosperity.”

In addition to exploring developments at the global and regional levels, the January 2018 Global Economic Prospects takes a close look at the outlook for potential growth in each of the six global regions; lessons from the 2014-2016 oil price collapse; and the connection between higher levels of skill and education and lower levels of inequality in emerging market and developing economies.

The press release includes regional summaries, and states that for East Asia and the Pacific, growth in the region is forecast to be 6.2 per cent in 2018 from an estimated 6.4 per cent in 2017.

Growth in Europe and Central Asia is anticipated to ease to 2.9 per cent in 2018 from 3.7 per cent in 2017, while growth in Latin America and the Caribbean is projected to advance to two per cent in 2018 from an estimated 0.9 per cent in 2017. Growth in the Middle East and North Africa region is expected to rise to three per cent in 2018 from 1.8 per cent in 2017, while in South Asia growth is anticipated to accelerate to 6.9 per cent in 2018 from an estimated 6.5 per cent in 2017. Growth in the Sub-Saharan Africa region is anticipated to pick up to 3.2 per cent from 2.4 per cent in 2017.