The World Bank late on Tuesday said global growth would accelerate slightly as recovering oil and commodity prices ease pressures on emerging-market commodity exporters and painful recessions in Brazil and Russia come to an end.
In its latest Global Economic Prospects report, the multilateral lender said it expected 2017 real gross domestic product growth to rebound to 2.7 per cent from a post-financial
crisis low of 2.3 per cent last year.
Growth in advanced economies is expected to edge up to 1.8 per cent in 2017 from 1.6 per cent in 2016, the World Bank said, while emerging and developing economies will see growth accelerate to 4.2 per cent this year from 3.4 per cent last year.
“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 statement. “Now is the time to take advantage of this momentum and increase investments in infrastructure and people.”
The World Bank forecasts 2017 US growth at 2.2 per cent versus 1.6 per cent in 2016, but the increase could be considerably larger — and have effects far beyond US shores.
“A surge in US growth — whether due to expansionary fiscal policies or other reasons — could provide a significant boost to the global economy,” it said.