World Bank Cuts Global Growth Estimates amid Trade Tensions

January 9, 2019

Washington--The World Bank, in a report released on Tuesday, cut its global economic growth estimate for 2019 to 2.9 pct from the June projection of 3.0 pct, warning that "downside risks have become more acute."

The World Bank also revised down its 2020 and 2021 global growth forecasts, pointing out that emerging and developing economies have lost recovery momentum due to tightening monetary policies in advanced economies, intensifying trade tensions, and financial market stress.

In the January 2019 version of the Global Economic Prospects report, the growth estimate for Japan is put at 0.8 pct, down 0.2 percentage point, for 2018, and 0.9 pct, up 0.1 point, for 2019, with adverse effects from a series of major natural disasters in the country in 2018 seen receding.

Japan's economy is forecast to expand 0.7 pct, up 0.2 point, in 2020.

The U.S. growth projection was kept unchanged at 2.5 pct for 2019, but reduced by 0.3 point to 1.7 pct for 2020, due to the fading effects of tax cuts, higher interest rates and increased tariffs.

China's growth is estimated at 6.2 pct, down 0.1 point, for 2019, as its imports are hit by the trade friction with the United States. Jiji Press