Weak growth among major emerging markets will weigh on global expansion in 2016, according to the latest report from the World Bank, with advanced economies solely responsible for a modest increase in global activity.
According to the World Bank’s “January 2016 Global Economic Prospects” report published Wednesday, economic growth in 2016 would pick up to a 2.9 percent pace, from 2.4 percent in 2015, despite weakness in emerging market economies.
While global economic growth was less than expected in 2015 amid a decline in commodity prices, flagging trade and episodes of financial volatility, the World Bank noted, the outlook for the coming year hinged on how developed economies performed.
“Firmer growth ahead will depend on continued momentum in high-income countries, the stabilization of commodity prices, and China’s gradual transition towards a more consumption and services-based growth model.”
The World Bank predicted that developing economies are set to expand by 4.8 percent in 2016, less than earlier forecasts, but up from a post-crisis low of 4.3 percent in the year just ended.