Global economic growth is projected to strengthen to 2.7% in 2017 as a pick-up in manufacturing and trade, rising market confidence, and stabilising commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.
This according to the World Bank’s June 2017 Global Economic Prospects report released yesterday (Sunday), which reveals that growth in advanced economies is expected to accelerate to 1.9% in 2017, which will also benefit the trading partners of these countries.
A spokesperson for the World Bank added that global financing conditions remained favourable and commodity prices had stabilised.
“Against this improving international backdrop, growth in emerging market and developing economies as a whole will pick up to 4.1% this year from 3.5% in 2016,” he said.
Growth among the world’s seven largest emerging market economies is forecast to increase and exceed its long-term average by 2018. Recovering activity in these economies should have significant positive effects for growth in other emerging and developing economies and globally.
The report points out that despite this rosy picture, substantial risks cloud the outlook. Amongst others, new trade restrictions could derail the welcome rebound in global trade. Persistent policy uncertainty could dampen confidence and investment.
Over the longer term, persistently weak productivity and investment growth could erode long-term growth prospects in emerging market and developing economies that are key to poverty reduction.
