World Bank warns of ‘darker skies’ for global economy
The World Bank has warned of increasing risks, or what it calls “darkening skies”, for the world economy. In its annual assessment of global prospects the World Bank predicts continued, though somewhat slower, growth this year and next. The Bank’s forecast for the global economy is expansion this year of 2.9% and 2.8% in 2020. The predicted slowdown is focused on the rich countries, particularly the US, although it will continue to expand more rapidly than either the Eurozone or Japan according to the Bank’s forecasts. The US slowdown is the result of the fading impact of President Trump’s tax cuts and by 2021 its growth will have almost halved – to 1.6% compared with 2.9% last year. In contrast, growth in emerging markets and developing economies is likely to gather pace somewhat despite the continued cooling down in China.