WB pessimistic for global economic growth


The World Bank (WB) on Wednesday cut its global economic growth forecast for 2016, saying the weak performance of major emerging market economies will tamp activity overall, as will anemic showings from developed countries such as the United States. Global growth should accelerate to 2.9 percent this year from 2.4 percent in 2015, the bank said, but that still represents a downgrade from its June forecast for 3.3 percent growth. The bank raised particular concern about the flagging performance of top emerging economies. "Given the size and global economic integration of the largest emerging markets - Brazil, the Russian Federation, India, China, and South Africa, or the so-called BRICS - the simultaneous slowdown underway in all but one of them could have significant spillovers to the rest of the world," the report said. Also, the WB dropped its forecast of annual growth for Turkey from 3.9 to 3.5 percent and from 3.7 to 3.5 for 2016 and 2017, respectively. Moreover, the U.S. economy should grow by 2.7 percent, down from an earlier estimate of 2.8 percent but up from 2015's 2.5 percent. Estimates for growth in the euro zone were trimmed by the same amount, to 1.7 percent from 1.8 percent previously, although that would mark a modest acceleration from 2015's estimated 1.5 percent rate.