(RTTNews.com) - The World Bank maintained its global economic outlook and forecast growth to accelerate from a post-crisis low seen in 2016, while cautioning that risks to the global outlook remain tilted to the downside.
In its June Global Economic Prospects, released Sunday, the bank said the global economy will grow 2.7 percent this year, unchanged from its January forecast.
This is faster than the 2.4 percent estimated for 2016. The bank said strengthening growth reflects a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices.
Further, growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit the trading partners of these countries, the bank said.
The US growth is expected to recover this year following a slowdown in 2016 that reflected investment and export weakness. The largest economy is projected to grow 2.1 percent this year and 2.2 percent next year.
In the euro area and Japan, growth forecasts have been upgraded reflecting strengthening domestic demand and exports.
Eurozone growth is expected to slow to 1.5 percent in 2018 from an estimated 1.7 percent in 2017. Likewise, Japan's economy is projected to gain 1.5 percent this year and 1 percent in 2018.
As global financing conditions remain favorable and commodity prices stabilized, growth in emerging market and developing economies will pick up to 4.1 percent this year from 3.5 percent in 2016, the World Bank added.
The agency cited increased trade protectionism, elevated economic policy uncertainty, the possibility of financial market disruptions as risks to the outlook.
The World Bank also highlighted concerns about mounting debt and deficits among emerging market and developing economies.
On the other hand, the lender observed the recovery in trade growth as a bright spot in the outlook. After a post-financial crisis low of 2.5 percent in 2016, trade is forecast to expand 4 percent this year.
China's growth outlook for both 2017 and 2018 were left unrevised at 6.5 percent and 6.3 percent, respectively.
Meanwhile, the agency trimmed India's outlook for 2017 to 7.2 percent from 7.6 percent and that for 2018 to 7.5 percent from 7.8 percent.
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