Istanbul, Jan. 9 (DHA) - Global economic growth is projected to soften from a downwardly revised 3.0 percent in 2018 to 2.9 percent in 2019 amid rising downside risks to the outlook, the World Bank said.
\"Emerging, developing economies should rebuild policy buffers, boost productivity to sustain growth\" the World Bank said in a statement with \"Darkening prospects: Global economy to slow to 2.9 percent in 2019 as trade, investment weaken\" headline.
International trade and manufacturing activity have softened, trade tensions remain elevated, and some large emerging markets have experienced substantial financial market pressures.
Growth among advanced economies is forecast to drop to 2 percent this year, the January 2019 Global Economic Prospects says.
Slowing external demand, rising borrowing costs, and persistent policy uncertainties are expected to weigh on the outlook for emerging market and developing economies. Growth for this group is anticipated to hold steady at a weaker-than-expected 4.2 percent this year.
“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.”
“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.”
The lingering effects of financial stress in Turkey are anticipated to weigh on regional growth this year, slowing it to 2.3 percent in 2019. Turkey is forecast to experience weak activity and slow to a 1.6 percent pace, from 4.0 percent in June outlook, due to high inflation, high interest rates, and low confidence, dampening consumption and investment. The World Bank downgraded Turkey\'s growth outlook in 2020 to 3.0 percent from 4.0 percent and set its outlook for 2021 at 4.2 percent.