The World Bank released the latest Global Economic Outlook Report, which again cuts its global economic growth forecast for the current and next two years. It is expected that this year’s economic growth will be 2.6%, the slowest in three years and 2.7% next year.
The World Bank pointed out in the report that due to trade conflicts, tightening of the financial environment, and the expected slowdown in economic growth in richer countries, and the generally unsatisfactory economic data in the past six months, the global economic growth forecast for this year is 2.6%. In January, the forecast was 0.3 percentage points lower, and next year’s growth was slightly accelerated to 2.7%, still lower than the forecast for January this year.
Downgrade global trade growth forecast
The World Bank maintains China and the United States this year’s economic growth forecast. China’s economy grew by 6.2% this year, 0.4 percentage points lower than last year, but it is still within the government’s economic growth target area. Next year’s growth forecast is lowered by 0.1 percentage point to 6.1%. The Bank believes that the fiscal and monetary policies in the Mainland have turned to easing, which will help offset the negative impacts brought by the Mainland and overseas.
The World Bank also pointed out that as the Sino-US trade war continues, this year’s trade growth forecast will be lowered by 1 percentage point to 2.6%, and next year will be slightly increased by 3.1%.
The report pointed out that global economic growth still faces significant downside risks, including further escalation of trade tensions, renewed financial pressures, and some major economic growth slowdowns beyond expectations.