Slowdown in Global Growth in the next two years

  • 7 June 2018

The World Bank has revealed a slowdown in Global Growth over the next two years as a result of central banks' tendency to raise interest rates as well as the start of the US fiscal stimulus. According to the World Bank Report about the prospects of the global Economy, Global growth has shrunk but is still strong with growth expectations of 3.1% this year and 3% in 2019, the same as previously. Saying his foreseeing for a slowdown in growth is the result of a global recession has started to dissipate, in addition to the sobriety of trade and investment. The World Bank raised its growth estimation for the US this year by 0.2% to reach 2.7% and by 0.3% in 2019 at 2.5%. The report predicted growth in developed economies was easing with the normalization of monetary policy; the bank's estimates showed that recovery in commodity exporters would increase over the next two years. In Japan, the World Bank cut its growth forecast this year by about 0.3 percent to 1 percent, while it maintained its growth forecast for the euro area at 2.1% and 1.7% in 2018 and 2019, respectively.

Get an annual subscription in the quarterly Arab Economic bulletin

SUBSCRIBE NOW