World Bank discloses main risks on 2018 global economy

Baku. 10 January. REPORT.AZ/ World Bank increased the 2018 outlook on global economic growth from June's 2.9% to 3.1% and disclosed the main risks.

Report informs referring to the Financial Times, bank experts predict that global economy growth may slow down by such risks as demographic factors, lack of investments, slowdown of productivity and toughening of monetary policy.

In addition, World Bank predicted that if the governments do not carry out structural reforms, global economic growth will be temporary.

According to bank’s predictions, growth in advanced economies is expected to slow from 2.3% last year, to 2.2 % this year, and 1.7 % by 2020.

World Bank has predicted that advanced economies (as a group) are expected to slow in the coming years as they run up against full employment and as central bankers raise rates to contain inflation.

As a group, advanced economies are expected to slow in the coming years as they run up against full employment and as central bankers raise rates to contain inflation, according to the World Bank. Emerging and developing economies, which grew by 4.3 percent as a group last year, are also likely to slow and contribute less to global growth.

Among those risks is a sudden rise in the now-low borrowing costs that have helped fuel much of the recovery in recent years, either from quicker than anticipated rate rises from the US Federal Reserve (Fed) and other central banks, or because of growing concerns about soaring capital markets. Protectionism and a resulting slowdown in global trade also remained a risk, especially as the 4.3 per cent increase in the volume of goods and services traded last year had been so important as an engine for broader growth.