Global economic growth is forecast to accelerate moderately to 2.7 per cent in 2017 after a post-crisis low last year, the World Bank said in a report released today.
“After years of disappointing global growth, we are encouraged to see stronger economic prospects on the horizon,” World Bank Group President Jim Yong Kim said in a news release.
“Now is the time to take advantage of this momentum and increase investments in infrastructure and people. This is vital to accelerating the sustainable and inclusive economic growth required to end extreme poverty,” he added.
The World Bank’s Global Economic Prospects January 2017 said that growth in advanced economies is expected to edge up to 1.8 per cent in 2017. Growth in the United States is expected to pick up to 2.2 per cent, as manufacturing and investment growth gain traction after a weak 2016.
Fiscal stimulus in major economies – particularly in the United States – could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects. But because of the “outsize role the United States plays in the world economy, changes in policy direction may have global ripple effects,” added World Bank Development Economics Prospects Director Ayhan Kose.