WASHINGTON —(MaraviPost)- Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020, World Bank report reveals this week.
Growth in emerging market and developing economies is expected to stabilize next year as some countries move past periods of financial strain, but economic momentum remains weak.
Emerging and developing economy growth is constrained by sluggish investment, and risks are tilted to the downside.
However the report says emerging, developing economies’ growth to pick up to 4.6% in 2020 from 4% in 2019; expansion vulnerable to trade, financial disruptions
These risks include rising trade barriers, renewed financial stress, and sharper-than-expected slowdowns in several major economies, the World Bank says in its June 2019 Global Economic Prospects: Heightened Tensions, Subdued Investment. Structural problems that misallocate or discourage investment also weigh on the outlook.
“Stronger economic growth is essential to reducing poverty and improving living standards,”
“Current economic momentum remains weak, while heightened debt levels and subdued investment growth in developing economies are holding countries back from achieving their potential,”said World Bank Group President David Malpass.
He adds, “It’s urgent that countries make significant structural reforms that improve the business climate and attract investment.
“They also need to make debt management and transparency a high priority so that new debt adds to growth and investment.”