The World Bank has reduced its global growth forecast for 2019 to 2.6%, a decrease from its previous estimate. This revision is primarily attributed to escalating trade disputes and a softening of investment activity worldwide.
In its latest Global Economic Prospects report, the World Bank highlighted several factors contributing to the lowered outlook:
- Rising trade barriers between major economies
- Increased uncertainty in financial markets
- Slowing growth in emerging markets and developing economies
The report also warned of potential downside risks that could further dampen global growth, including:
- A sharper-than-expected slowdown in major economies
- An escalation of trade tensions
- Geopolitical risks
Despite the downward revision, the World Bank anticipates a modest rebound in global growth in 2020 and 2021, driven by a gradual recovery in investment and trade. However, it emphasized the need for policymakers to address the underlying challenges and implement reforms to foster sustainable and inclusive growth.
The World Bank’s updated forecast underscores the increasing fragility of the global economy and the importance of international cooperation to mitigate risks and support economic stability.
