Mon | Jul 23, 2018

World Bank forecast 2.7% global growth in 2017

Published:Tuesday | January 10, 2017 | 4:58 PM

Global economic growth is forecast to accelerate moderately to 2.7 per cent in 2017 after a post-crisis low last year as obstacles to activity recede among emerging market and developing economy commodity exporters, said the World Bank in a report released today.

It also attributes the accelerated growth to domestic demand which it said remains solid among emerging and developing commodity importers.

Growth in advanced economies is expected to edge up to 1.8 per cent in 2017, the World Bank's January 2017 Global Economic Prospects report said.

Fiscal stimulus in major economies, particularly in the United States, could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects, according to a release out of Washington.

Growth in emerging markets and developing economies as a whole should pick up to 4.2 per cent this year from 3.4 per cent in the year just ended amid modestly rising commodity prices.

“Nevertheless, the outlook is clouded by uncertainty about policy direction in major economies,” the release said.

It added that a protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle and high income countries.