World Bank cuts global growth outlook as trade expansion falters

Inflation in Russia in 2018 remained low, economy grew despite sanctions - World Bank

Inflation in Russia in 2018 remained low, economy grew despite sanctions - World Bank

The bank said emerging and developing economies should rebuild policy buffers and boost productivity to sustain growth.

It expects the country's economy will grow at 1.7% in 2020, and 1.8% in 2021.

The GEP presented a gloomy outlook for the world as a whole: Growth was projected to slow to 2.9 per cent for the current year, down from the estimated 3 per cent for the last year and to grow only by 2.8 per cent in the next two years.

The bank, which published its annual Global Economic Prospects on Tuesday evening, downgraded the country's projected 2019 growth rate from its June 2018 estimate of 1.8%.

The report was markedly more pessimistic than a year ago - when the outlook was for synchronized global growth - and peppered with exhortations to take "urgent", "imperative" or "critical" action.

Releasing the report, the Bank's Chief Executive Officer 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 growth momentum is there (in India)", Mr. Kose told PTI. It predicts 1.6 percent growth for the 19 countries that use the euro currency, down from 1.9 percent previous year; and 6.2 percent growth for China, the world's second-biggest economy, versus 6.5 percent in 2018.

"We hope to counter global headwinds with strong domestic demand: BBB (Build, Build, Build) program, consumption (including election spending), domestic investment and FDIs (foreign direct investments) - the latter two helped by the EoDB (Ease of Doing Business) law and the reduced 11 FINL (Foreign Investment Negative List)". In 2017, China grew at 6.9 per cent while India's GDP growth was 6.7 per cent. "India's growth outlook is still robust".

Ms Georgieva will serve as the interim President of the World Bank after Jim Yong Kim departs the global financial institution on February 1. Inflation is projected to rise somewhat above the midpoint of the Reserve Bank of India's target range of 2 to 6%, mainly owing to energy and food prices, the bank said.

On the Narendra Modi government's decision to implement the Goods and Services Tax (GST), the World Bank report said, "In India the recent introduction of a GST and steps toward demonetisation are expected to encourage a shift from the informal to the formal sector". Bangladesh is expected to register a growth of 7 per cent in 2018-19. "Global financing conditions have tightened, industrial production has moderated, trade tensions have intensified, and some large emerging market and developing economies have experienced significant financial market stress", the bank said. "Year after year it has delivered strong numbers around its potential growth", he said.

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