The World Bank has cut its global growth forecast, warning the US alone cannot drive an economic recovery.<\/p>\n
In its bi-annual report, the Bank predicted global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively.<\/p>\n
“The global economy is running on a single engine…The American one. This does not make for a rosy outlook,” chief economist Kaushik Basu warned.<\/p>\n
[contextly_sidebar id=”TTfzwQLoCyqMDOY6f2syyjCb1rGsjPhV”]However, it said lower oil prices would benefit some countries.<\/p>\n
“The lower oil price, which is expected to persist through 2015, is lowering inflation worldwide and is likely to delay interest rate hikes in rich countries,” said Mr Basu.<\/p>\n
“This creates a window of opportunity for oil-importing countries, such as China and India; we expect India’s growth to rise to 7% by 2016,” he added.<\/p>\n
However, the Bank warned that lower oil prices would hurt growth in countries which export oil, such as Russia, weighing on its global growth predicitions.<\/p>\n
The World Bank expects the Russian economy to contract by 2.9% this year, and to grow just 0.1% in 2016.<\/p>\n
‘Sputtering’ eurozone<\/strong><\/p>\n In contrast, it said economic activity in the US and the UK was “gathering momentum” as interest rates remain low.<\/p>\n But it said the lingering “legacies of the financial crisis’ meant the recovery had been “sputtering” in the eurozone and Japan.<\/p>\n The Bank warned low inflation could persist in the eurozone, and forecast growth of 1.1% in 2015, rising to 1.6% in 2016-17. In Japan, it expects growth to rise to 1.2% in 2015 and 1.6% in 2016.<\/p>\n “The gobal economy is at a disconcerting juncture,” Mr Basu added.<\/p>\n Source: BBC<\/p>\n","protected":false},"excerpt":{"rendered":" The World Bank has cut its global growth forecast, warning the US alone cannot drive an economic recovery. In its bi-annual report, the Bank predicted global growth of 3% this year and 3.3% next year, below its June forecast of 3.4% and 3.5% respectively. “The global economy is running on a single engine…The American one. […]<\/p>\n","protected":false},"author":14,"featured_media":48940,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"jnews_override_counter":[],"footnotes":""},"categories":[],"tags":[4],"class_list":["post-82251","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-st-augustines-college"],"_links":{"self":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/82251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=82251"}],"version-history":[{"count":0,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/82251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=\/wp\/v2\/media\/48940"}],"wp:attachment":[{"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=82251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=82251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/citifmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=82251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}