The world’s economy would record a growth of 3.1 per cent in 2018 in spite of the current downward trend, says the World Bank.
This was revealed in the firm’s June 2018 Global Economic Prospects where it said that after 2019, the global economy would experience a slump which will run over the next two years.
“But growth alone won’t be enough to address pockets of extreme poverty in other parts of the world. Policymakers need to focus on ways to support growth over the longer run, by boosting productivity and labor force participation to accelerate progress toward ending poverty and boosting shared prosperity,” the World Bank Group President Jim Kim, said.
“Growth in emerging market and developing economies overall is projected to strengthen to 4.5 per cent in 2018, before reaching 4.7 per cent in 2019, as the recovery in commodity exporters matures and commodity prices level off following this year’s increase.
“This outlook is subject to considerable downside risks. The possibility of disorderly financial market volatility has increased, and the vulnerability of some emerging market and developing economies to such disruption has risen.
“Trade protectionist sentiment has also mounted, while policy uncertainty and geopolitical risks remain elevated.”