Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

World Bank cuts global growth forecast

The World Bank has slashed 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.”

Advertisement
Advertisement

“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’]

World Bank cuts global growth forecast
mortgagebusiness

Latest News

Home loans commitments took a positive turn in May following a fall in April, new data reveals. ...

Economists from three of the big four banks expect the Reserve Bank will hand down a similar cash rate hike of 50 bps today (5 July). ...

The banking group has confirmed it will be closing branches under the Westpac, Bank of Melbourne or St.George brands in more than 20 locatio...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.