According to the forecast of the World Bank, the global economic growth will come in at 2.7% in 2017 driven by the weakening of factors that constrain economic activity in emerging counties exporting raw materials upon sustained domestic demand in developing countries importing raw materials.
In 2016, growth slumped to 2.3%, the lowest rate since the 2008 financial crisis.
The bank’s projection for 2017 is down 0.1% from its forecast in June. The forecast for 2018 was also revised down by 0.1% to 2.9%. The World’s Bank estimates that global growth will remain at 2.9% in 2019.
Developed nations will see their economic growth at 1.8% in 2017. For emerging and developing economies, growth is expected to accelerate to 4.2% in 2017. In 2018, growth rates are projected at 1.8% and 4.6%, respectively.
Last year, growth in advanced economies came in at 1.8%, while that in emerging nations was 3.4%.
According to experts, there are certain risks associated with the policies of leading countries. So investment growth could weaken, thus affecting economic growth in low-, middle- and high-income countries.
