The World Bank presented forecast on world economy for a year

 Breaking News
  • Microsoft, Amazon and eBay are at record highs On Tuesday, securities of Microsoft Corp, Amazon.com Inc and eBay Inc broke records. The rush of investors’ demand for the shares of those companies involved in electronic commerce caused such...
  • Quarantine in Hong Kong is not for everyone Hong Kong is rescuing its stock exchange. In order to give life to the trading platform, the administration of the metropolis has shown flexibility concerning quarantine measures. So, Christopher Hui...
  • Economy of Japan demonstrates recession In the first quarter of this year, the economy of the Land of the Rising Sun dropped by 0.6% in monthly terms. The figures are not optimistic but are better...
  • Energy market news On Saturday, representatives of the countries included in the OPEC+ cartel managed to agree on the extension of the restrictions on oil production. It also became known that those countries...
  • Bentley fires employees in order to prevent losses in 2020 The Bentley brand has long been synonymous with luxury living. Unfortunately, the British automaker has to save because of a forced two-month break. The company’s CEO Adrian Hallmark said to...
The World Bank presented forecast on world economy for a year
January 09
09:00 2020

The World Bank has presented its forecasts on the development of the global economy for the beginning of 2020. The review notes that the growth will be about 2.5%. At the same time, investments and trade will gradually recover. However, the risks for these indicators will continue.

World GDP will grow by 2.4%. Countries with developed economies will slow down their growth to 1.4% (from the current 1.6%). This will be due to the continued weakening of the manufacturing industry.

Developing countries, as well as emerging economies will show 4.1% growth in 2020. But the figure will not be widespread. Ceyla Pazarbasioglu, Vice President at the World Bank, notes that growth rates for these countries are likely to be small. In these conditions, they should carry out reforms stimulating the large-scale economic growth, which will contribute to the fight against poverty in this group of countries.

The World Bank considers aggravation in the field of trade policy and a sharp decline in the economies of the largest developing countries to be the main risks of the world economy. If we assume that their GDP will grow according to forecasts, then per capita indicators will still remain significantly below the average for recent years.

US GDP growth will drop to 1.8%. This will be the result of increased trade tension and the introduction of duties on the import of various goods.

The forecast for the EU for 2020 was changed; it decreased to 1% from 1.4%. The poor performance of the industry caused the change.

In 2020, Russia’s GDP will rise by 1.6%, in 2021 – by 1.8%.

The growth of the Chinese economy will slow down. In 2020, GDP will be 5.8%, in 2021 – 5.7%.

The Japanese economy will show the growth of 1.1%. In 2020, it will increase 1%, in 2021 and 2022 – 1.3%.

A large decrease is observed in forecasts for world trade in the period from 2019 to 2021. This year the indicator will grow by only 1.9%. The previous forecast was 3.2%. The forecast for trade growth in 2021 was reduced to 2.5% from 3.2%.

The World Bank believes that this year the oil price will lose more than 5%; in 2021, on the contrary, it will grow almost 2%.

 

The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group

Related Articles

0 Comments

No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment