World Bank Pares Global Growth Forecast

The World Bank trimmed its global economic growth outlook on Wednesday, warning that developing markets faced a raft of headwinds ranging from lower commodity prices to the prospect of higher borrowing costs.

The Washington-based lender now expects the world economy to expand 2.8 percent in 2015, down from its January projection of 3 percent, according to its bi-annual Global Economic Prospects (GEP) report. It maintained its growth forecasts for 2016 and 2017 at 3.3 percent and 3.2 percent, respectively.

“Developing countries were an engine of global growth following the financial crisis, but now they face a more difficult economic environment,” Jim Yong Kim, group president at World Bank, said in a statement.

It downgraded its 2015 and 2016 growth outlook for developing economies to 4.4 percent and 5.2 percent, from 4.8 percent and 5.3 percent respectively.

Lower prices of oil and other commodities have intensified the slowdown in several developing countries which rely heavily on resource exports, the World Bank said.

CNBC

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Craig Erlam

Craig Erlam

Former Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.