With the world economy goes downhill. Slowly, but unmistakably. As a result, the world Bank lowers its growth forecasts – and focus-Provide a lyrical title.
“Darkening Skies” is the name of the analysis, the world Bank corrected its Outlook for the world economy downwards. Global growth is expected not to three percent, as in the June forecast, but by only 2.9 percent. It would be the second year in a row in which growth slows: The world economy grew last year by three percent and in 2017 to 3.1 percent.
The reasons are many, a more important, however, is made in-house: “trade tensions are already having an impact on the activities around the world,” said the senior world Bank economist Ayhan Kose, the AFP news Agency. “The sky darkens, and we see how the world economy is slowing down.”
“Debt of the state eat up revenue”
In addition to the trade tensions, the world Bank refers to a slowdown in the production activity and growing financial Stress in the emerging countries, which had borrowed in times of low interest, high: “Now the debt service eats up the revenue, what makes it the governments more and more difficult to Finance essential social services,” says world Bank Director Kristalina Georgieva. “At the beginning of 2018, the world has fired the economy on all cylinders, but it has lost pace and the journey could be even bumpier in the current year.” This would also affect a particular concern of the world Bank: the fight against extreme poverty in the world.
Kristalina Georgieva will guide the world Bank Commissioner, Bank President Jim Yong Kim retires at the end of January
The growth of the industrial countries will decline to only two percent in the current year, the forecast further, in the developing and emerging countries the growth will go with 4.2 percent, also a slower pace. Georgieva warns of a rapid tightening of monetary policy – this could be much-needed capital flows to emerging-market countries.
In the USA it will continue going down significantly. To 2.9 percent in 2018, is expected for the current year only 2.5 percent. In the election year 2020, there could be only weak 1.7 per cent growth in the largest economy in the world.
rb/se (afp, ap, dpa)