The China Effect – World Bank lowers growth forecasts for 2016 and 2017

Home / Growth Forecasts / The China Effect – World Bank lowers growth forecasts for 2016 and 2017 FORECAST

The world bank is out with its “biannual global economic prospects report”.

The bank forecasts world growth in 2016 at 2.9%. In June 2015 they were forecasting 3.3%
US growth for 2016 has been trimmed from 2.8% to 2.7% (strong Dollar effect being the reason)
China’s growth forecast for 2016 is now 6.7 percent, down from 7 percent in June. 6.5 percent increase is now estimated for 2017.

“The global economy will need to adapt to a new period of more modest growth in large emerging markets, characterized by lower commodity prices and diminished flows of trade and capital… This outlook is expected to be buttressed by recovery in major high-income economies, stabilizing commodity prices, and a continuation of low interest rates… All this does not rule out the fact that there is a low-probability risk of disorderly slowdown in major emerging markets, as U.S. interest rates rise after a long break and the U.S. dollar strengthens, and as a result of geopolitical concerns.”

Recommended Posts