Global Growth Set to Ebb as Expansion Shows Age, World Bank Says

Bloomberg, Jun 6, 2018
by Andrew Mayeda

Global growth is set to slow over the next two years as central banks raise borrowing rates and U.S. fiscal stimulus starts to fade, the World Bank said.

The world economy will grow 3.1 percent this year and 3 percent in 2019, the development lender said Tuesday in its latest Global Economic Prospects report. Both forecasts were unchanged from January, the last time the Washington-based bank updated its projections. About half the world’s economies are accelerating, underscoring the breadth of the upswing.

Growth will further slow in 2020 as the world economy approaches full output, trade and investment growth wanes, and financial conditions tighten, the World Bank said. Risks are tilted to the downside, and include the threat of a sudden contraction in global credit and a spike in protectionism.

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