As per World Bank’s Global Economic Prospects (GEP) report released on June 4, 2017, the global economy is expected to grow at 2.7% in 2017 and 2.9% in 2018. World Bank has thus maintained its January 2017 forecast.
Highlights of World Bank’s Global Economic Prospects (GEP) report:
- Advanced economies are expected to grow at 1.9% in 2017, accelerating from the 1.7% growth in 2016. However growth of advanced economies will slow down to 1.8% in 2018 and 1.7% in 2019.
- In 2017, emerging markets and developing economies are expected to grow at 1%, as compared to 3.5% in 2016. These economies will soon catch momentum and are expected to register growth rate of 4.5% in 2018 and 4.7% in 2019.
- As per the report, emerging market economies including China and India will surpass their long term growth average by 2018.
- The report has outlined that trade and manufacturing activities are picking up and overall confidence is improving.
- World Bank expects the Chinese economy to grow at 6.5% this year and 6.3% in 2018 and 2019.
- US economy is projected to grow 1% this year.
It is to be noted that, as per recently released “India Development Report” by World Bank, Indian economy is expected to grow at 7.2% in FY 2017-18 as compared to 6.8% in 2016-17.
Quick facts about World Bank:
World Bank is an international financial institution that provides loans to its member countries for developmental projects.
- It was formed in year 1945.
- World Bank comprises two institutions: the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
- Headquarters of World Bank is located in Washington D.C., US.
- Jim Yong Kim is the current President of World Bank.