World Bank’s Global Economic Prospect
Posted on : 15 Jan 2020Views: 75
- The World Bank released a gloomy outlook for global economic growth on Wednesday, cutting its forecast for the fourth time in a row as it warned of ongoing uncertainties from tariffs and geopolitical tensions, as well as the risk of a fresh global debt crisis.
- In its latest biannual Global Economic Prospects report, the World Bank released its latest projections for the global economy in 2020.
- The 189-country lending institution trimmed its outlook for this year, expecting the weakest growth since the global financial crisis as the world economy remains vulnerable to geopolitical tensions and a potential re-escalation of the ongoing trade war between the U.S. and China.
- Growth among advanced economies is set to decline 1.4% in 2020—thanks in part to a global slowdown in manufacturing, while growth in emerging market and developing economies, spurred by a smaller group of large economies, will rise 4.1% according to Bank’s forecast.
- The World Bank also warned of the risk of a fresh global debt crisis, spurred by the “largest, fastest, and most broad-based accumulation of debt since the 1970s.” In 2018, for example, global debt climbed to a record high of around 230% of GDP.
- While current low levels of interest rates mitigate some of the risks associated with high debt, previous waves of broad-based debt accumulation ended with widespread financial crises,” the report found.
- The Global Economic Prospects (GEP) is the World Bank’s semi-annual flagship publication on the state of the world economy.
- In a nutshell, the outlook for the global economy has darkened, amid slowing activity and heightened downside risks.
- In addition to discussing global and regional prospects, this edition includes several pieces on topical issues facing emerging market and developing economies (EMDEs), including the challenges associated with the presence of large informal sectors, the prospects for continued low inflation, rising debt vulnerabilities in low-income countries, and the implications of large food price spikes for poverty.
Article Related Questions
Global Economic Prospect is released by which organization?
The 1857 Uprising was the culmination of the recurrent big and small local rebellions that occured in the preceding hundred years of British Rule. Elucidate (Answer in 150 words) - 2019 Mains
1.International Monetary Fund
3.Organisation for Economic Co-operation and Development
4.Economic Cooperation Organization
Right Ans : World Bank