Citing the impacts of international trade moderation and elevated trade tension, the World Bank forecasted on Tuesday, the 9th of January, 2019, that the growth of global economy is likely to be slowed down by 2.9 percent, while the figure for 2018 was 3 percent.
In the Semi-Annual Global Economic Prospects reports, the Chief Executive Officer of World Bank, Kristalina Georgieva said, “At the beginning of 2018 the global economy was firing on all cylinders, but it lost speed during the year and the ride could get even bumpier in the year ahead.
” The World Bank outlooked a brittle 2019, in the wake of ongoing US and China trade tension, which had already whacked trillions from the equity markets and goods worth of billions of dollars are stuck in the inventories.
Although, there had been signs of progress on Wednesday, as US and Chinese delegates had concluded an extended trade talk on Beijing with hopes of an earlier resolution of tariff conflict. According to the World Bank, the US growth is likely to be slowed down by 2.5 percent from 2018’s 2.9 percent, while Chinese economy is expected to expand by 6.2 percent.
The emerging market economies are forecasted to grow 4.2 percent on 2019, while the advanced economies might expand 2 percent, the World Bank report revealed.