The World Bank has cut its forecast for global economic growth as “stronger headwinds” buffet both emerging markets and developing economies.
In its June 2016 Global Economic Prospects report, the World Bank reduced its forecast for global economic growth this year to 2.4 per cent, down from 2.9 per cent in January.
The bank’s 2.4 per cent growth forecast for 2016 is also unchanged from the “disappointing” growth of 2015.
According to the report, the downward revision was driven by weaker growth among advanced economies, low commodity prices and “lacklustre” global trade and capital flows.
“Divergences between commodity exporters and importers persist,” it said. “Conditions remain markedly challenging for commodity exporters, which continue to struggle to adjust to the new era of depressed prices.”
“In contrast, commodity importers are showing greater resilience to headwinds, although the expected growth windfall from low energy prices has been surprisingly modest.
“In an environment of anaemic growth, the global economy faces mounting risks, including a further slowdown in major emerging markets.”
[Related: Global growth avoiding ‘stall speed’]