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World Bank warns of weaker global growth | World Bank warns of weaker global growth |
(32 minutes later) | |
The global economy is weakening, according to a new assessment from the World Bank. | |
The bank said it now expects growth of 2.6% for 2019 edging up to 2.7% the following year. | The bank said it now expects growth of 2.6% for 2019 edging up to 2.7% the following year. |
The slowdown is widespread, according to the Bank's economists, affecting many countries. | The slowdown is widespread, according to the Bank's economists, affecting many countries. |
And there are risks to even this subdued outlook, including the uncertainty for business created by international trade tensions. | And there are risks to even this subdued outlook, including the uncertainty for business created by international trade tensions. |
One of the lead authors of the report, Franziska Ohnsorge, said the World Bank had warned in its previous forecasts six months ago of darkening skies. | One of the lead authors of the report, Franziska Ohnsorge, said the World Bank had warned in its previous forecasts six months ago of darkening skies. |
"Then it was a forecast" she told the BBC. "But now we see it in the data." | "Then it was a forecast" she told the BBC. "But now we see it in the data." |
In January, the World Bank changed its outlook for 2019 from 3% growth to 2.9%. | In January, the World Bank changed its outlook for 2019 from 3% growth to 2.9%. |
There has been a "broad based disappointment" affecting trade, investment and manufacturing and developed as well as emerging economies, Ms Ohnsorge said. | There has been a "broad based disappointment" affecting trade, investment and manufacturing and developed as well as emerging economies, Ms Ohnsorge said. |
Trade conflict has been an important factor behind the weaker growth, in particular the tension between the US and China. | Trade conflict has been an important factor behind the weaker growth, in particular the tension between the US and China. |
Between them, the two countries account for a third of global economic activity. Ms Ohnsorge said the uncertainty has an impact on investment by business | Between them, the two countries account for a third of global economic activity. Ms Ohnsorge said the uncertainty has an impact on investment by business |
It has been recurrent theme in the World Bank's analysis. | It has been recurrent theme in the World Bank's analysis. |
China's growth is expected to continue to slow. | China's growth is expected to continue to slow. |
In the three decades up to 2010 the annual average was 10%. The forecast for this year is 6.2% | In the three decades up to 2010 the annual average was 10%. The forecast for this year is 6.2% |
That partly reflects a deliberately encouraged slowdown which the Chinese government has sought to achieve, believing as most economists also do, that the earlier growth rate could not be sustained much longer. | That partly reflects a deliberately encouraged slowdown which the Chinese government has sought to achieve, believing as most economists also do, that the earlier growth rate could not be sustained much longer. |
So far, it has been reasonably orderly and the "hard landing" that many feared has not materialised. | So far, it has been reasonably orderly and the "hard landing" that many feared has not materialised. |
But there is also an element of trade tension in the slower growth that China is expected to record this year. | But there is also an element of trade tension in the slower growth that China is expected to record this year. |
Reducing poverty | Reducing poverty |
Global economic weakness has a key impact on the Bank's principal role: to promote economic development and the reduction of poverty. | Global economic weakness has a key impact on the Bank's principal role: to promote economic development and the reduction of poverty. |
David Malpass, who was recently named as president of the World Bank by Donald Trump, said "Stronger economic growth is essential to reducing poverty and improving living standards." | David Malpass, who was recently named as president of the World Bank by Donald Trump, said "Stronger economic growth is essential to reducing poverty and improving living standards." |
Figures for Africa are particularly troublesome in his respect. | Figures for Africa are particularly troublesome in his respect. |
Although the bank is forecasting somewhat stronger growth there this year than last - at 2.9% - it is still not enough to significantly reduce poverty on the continent. | Although the bank is forecasting somewhat stronger growth there this year than last - at 2.9% - it is still not enough to significantly reduce poverty on the continent. |
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