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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