(RTTNews) - World Bank downgraded its global growth outlook citing subdued investment and risks from escalating trade tensions.
Global growth is forecast to ease to 2.6 percent this year, reflecting weaker-than-expected trade and investment, the bank said in its semi-annual report, released Wednesday. The 2019 growth outlook was revised down from 2.9 percent.
Growth is projected to gradually rise to 2.8 percent by 2021, predicated on continued benign global financing conditions and a modest recovery in emerging market and developing economies.
The bank cautioned that risks to the outlook remain firmly on the downside, including the possibility of escalating trade tensions. The major concern is a slowdown in global trade growth to the lowest level since the financial crisis ten years ago and a tumble in business confidence, World Bank noted.
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