The World Bank cut its global growth forecast yesterday amid weaker outlooks for the US, Russia and China, while calling on emerging markets to strengthen their economies before the Federal Reserve raises interest rates.
The lender predicted the world economy would expand 2.8 percent this year, compared with a January projection of 3.2 percent. The US forecast was reduced to 2.1 percent from 2.8 percent while outlooks for Brazil, Russia, India and China were also lowered. The setbacks may be temporary: the 2015 estimate for world economic growth was unchanged at 3.4 percent.
“The global economy got off to a bumpy start this year buffeted by poor weather in the US, financial market turbulence and the conflict in Ukraine,” the World Bank said in its Global Economic Prospects report on Tuesday. “Despite the early weakness, growth is expected to pick up speed as the year progresses.” – Bloomberg