World Bank: Global economy will slow in 2019, reach 2.9% in 2020



In its latest report on the future of the world economy, the world apex bank notes that world economy was at 3.1% in 2017 and 2018. According to the bank, this is expected to slow in 2019 and 2020 as global slack dissipates, major central banks remove policy accommodation, and the recovery in commodity exporters matures.
The report states that the growth of the world economy will be 3.0% in 2019 and expected to dip by 0.1%, reaching 2.9% in 2020. Despite the projected growth decline, the international bank notes that “Amid moderating international trade and tightening global financing conditions, growth in emerging market and developing economies is projected to plateau, reaching 4.7 percent in 2019 and 2020, up from 4.5 percent in 2018.
“Demographics (declining labor supply in many, large countries) and the legacy of low investment growth in the past contribute to this limited potential growth,” Shantayanan Devarajan, a Senior Director Development Economics stressed.
In Sub-Saharan Africa, “Growth in the region is projected to strengthen to 3.1 percent in 2018 and to 3.5 percent in 2019, below its long-term average. Nigeria is anticipated to grow by 2.1 percent this year, as non-oil sector growth remains subdued due to low investment, and at a 2.2 percent pace next year.
Angola is expected to grow by 1.7 percent in 2018 and 2.2 percent in 2019, reflecting an increased availability of foreign exchange due to higher oil prices, rising natural gas production, and improved business sentiment. South Africa is forecast to expand 1.4 percent in 2018 and 1.8 percent in 2019 as a pickup in business and consumer confidence supports stronger growth in investment and consumption expenditures.
Rising mining output and stable metals prices are anticipated to boost activity in metals exporters. Growth in non-resource-intensive countries is expected to remain robust, supported by improving agricultural conditions and infrastructure investment.

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