WASHINGTON - Global economic growth is predicted to rise to 2.5% in 2020 as investment and trade recover from last year’s weakness gradually although downward risks remain, says the World Bank in the January 2020 edition of Global Economic Prospects.
According to the report, growth among developed countries is forecast to drop to 1.4% this year due to continued softness in manufacturing, while growth in emerging markets is expected to surge to 4.1%. The report also projects about a third of developing countries to slow down this year due to weaker-than-expected exports and investment.
“With growth in emerging and developing economies likely to remain slow, policymakers should seize the opportunity to undertake structural reforms that boost broad-based growth, which is essential to poverty reduction,” said World Bank Group Vice President for Equitable Growth, Finance and Institutions Ceyla Pazabasioglu in an official statement received by IDNFinancials.com, Wednesday (8/1).
“Steps to improve the business climate, the rule of law, debt management, and productivity can help achieve sustained growth.” (MS)