World Bank predicted low growth of global economy
The World Bank published a report “Global Economic Prospects: Slow growth”. Based on the forecast, the global economy will grow by 0.1% per year in the next couple of years.
The Bank estimates that the development of large countries will slow down to 1.4%. Previously, they keep 1.6%. The growth rate of developing countries will on the contrary increase from 3.5% to 4.1%, but this will not happen in all states.
According to analysts, this year the global economic growth will increase due to the restoration of investment and trade spheres. They also indicate that still there are the risks of decline in these sectors. The list of jeopardies includes an escalation of tension in trade and its policies, stagnation in the economies of large countries, and economic turmoil in emerging markets.
A recovery in economic growth rates will not reduce poverty in the world, as the increase in per capita production will be less than the indicators that have been formed over many years.
The World Bank has also touched oil prices. The price of product will drop to $59 per barrel. Thanks to the launch of new pipelines, US oil production will increase. Oil prices may increase due to the gradual weakening of US-China trade relations.
Last year, the World Bank predicted a 1% economic growth in Russia. Analysts, meanwhile, have focused on the underdevelopment of private investment, the lack of market competition and political uncertainty.