The World Bank anticipates that the global economic growth will remain unchanged at 2.7% in 2017 and will accelerate to 2.9% in 2018.
However, there are some headwinds that hold back the recovery in emerging markets and growth in advanced economies. Brazil, Russia, Nigeria, and other developing nations will overcome a two-year slowdown if the commodity prices rebound. Besides, the growth in Europe and the United States picks up. The world’s biggest economies have finally gathered momentum and are showing signs of recovery.
This year the global trade advanced by 4% versus 2.5% last year as the manufacturing activity, investments and commodity prices increased. At the same time, the World Bank warns that there are downside risks in most forecasts.
Particularly, debts increase in some developing countries such as China, which poses risks to the global development. This problem concerns the corporate sector to a greater extent. These factors may put the financial sector and public budgets under pressure, causing a fall in export orders and capital outflows.
Concerns over trade wars also pose risks to the global economy. Thus, Donald Trump’s America First policy may entail higher import levies and creation of new trade barriers in the US, China and other countries.
