World Bank raises global growth projections
11/01/2018 12:30
The World Bank raised its forecast for global economic growth by 3.1 per cent in 2018 after a much stronger-than-expected 2017, as the recovery in investment, manufacturing, and trade continues.

The outlook for 2019 was lifted to 3 per cent from 2.9 per cent. For 2020, the bank forecast 2.9 per cent expansion.

"The broad-based recovery in global growth is encouraging, but this is no time for complacency," World Bank Group President Jim Yong Kim said.

"If policy makers around the world focus on these key investments, they can increase their countries' productivity, boost workforce participation, and move closer to the goals of ending extreme poverty and boosting shared prosperity."

Growth in advanced economies is expected to moderate slightly to 2.2 per cent in 2018, as central banks gradually remove their post-crisis accommodation and the upturn in investment growth stabilizes. Growth in emerging market and developing economies as a whole is projected to strengthen to 4.5 per cent in 2018, as activity in commodity exporters continues to recover amid firming prices.

US growth is expected to reach 2.5 per cent in 2018, above previous expectations, and then to moderate to an average of 2.1 per cent in 2019-20.

Eurozone GDP growth is expected to be 2.1 per cent in 2018, down from 2.4 per cent in previous year but notably stronger than previously projected 1.5 per cent. It was then forecast to average 1.6 per cent in 2019-20.

Japan's growth is expected to slow to 1.3 per cent in 2018, as fiscal stimulus is withdrawn and export growth moderates. GDP growth was seen at 0.8 per cent in 2019 and 0.5 per cent in 2020.

The lender said China's growth reached 6.8 percent in 2017, up from the previous projection of 6.5 per cent. Growth was forecast to edge down in 2018 to 6.4 per cent as policies tighten, and average 6.3 per cent in 2019-20.