WASHINGTON, Oct 9:Global growth is expected to soften this year to 2.5 percent from 2.6 percent projected in June because of weakening trade and investment, the World Bank said in a report on Wednesday.
“Global growth has continued to soften in 2019. It is projected to decelerate to 2.5 percent this year, amid weaker-than-expected trade and investment,” the Europe-Central Asia Economic Update said.
The escalation of trade tensions, heightened policy uncertainty and overall decline in confidence are among other reasons for this years\’ projected deceleration, the World Bank added.
“Under current working assumptions, more than half of all economies – including several major advanced economies and [emerging and developing markets] – are expected to slow in 2019,” the report said.
Global growth in 2020 is also projected to be slightly slower than expected. However, global growth could stabilize at 2.6% by 2021 if there are no major economic shocks and emerging and developing markets experience a modest recovery.
(AGENCIES)
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