The world economy is expected to grow by 3.1% this year, a little higher than in 2017 and entering the year when it’ll approach or fulfill its potential for the first time since the Great Recession of 2008, according to the World Bank’s yesterday statement.
The economic upturn in 2018 is going to be short-lived unless governments change their policies so that they concentrate on lifting workforce activity, as the World Bank warned.
The rate of global expansion will slow down to 3% in the next year and to 2.9% in 2020, it predicted.
The growth will largely be pushed by emerging countries, especially those exporting commodities, it also said.
However, it’s different for advanced countries, where growth is forecasted to move down to 2.2% in 2018, 0.1% lower than last year, as central banks slowly get rid of after-crisis accommodation.
Long-term prospects with decelerating potential expansion – showing the pace at which an economy is able to grow when workforce and capital are completely involved – emphasize risk of slowing growth in living standards and lessening poverty in the world, the Bank’s Global Economic Prospects released this year said.