Emerging economies projected to grow at 4.1pc paceBusiness | 9 Jan 2020 11:40 am
Growth in emerging economies is expected to accelerate to 4.1 percent this year, but the acceleration will not be broad based, the World bank says in an update forecast.
A rebound is forecast for a group of larger economies — including Argentina, Brazil and India — which are expected to recover this year after a period of substantial weakness.
But the forecast expects growth in about one-third of emerging market economies to slow this year due to weaker-than-expected exports and investment.
US President Donald Trump’s get-tough trade policies aimed at lowering America’s huge trade deficits as a way to boost U.S. manufacturing jobs have resulted in an increase in protectionist barriers in the United States and many other nations.
The World Bank estimated that global trade growth slowed from 4 percent in 2018 to just 1.4 percent last year, the weakest gain since the 2008 financial crisis.
The World Bank, however, noted the lowering of trade tensions between the United States and China after a so-called Phase One agreement was reached between the two nations. It forecast that trade should resume growth this year, although the projected trade growth of 1.9 percent would still be far below the 5 percent average gains in recent years.
Among other threats to growth, the World Bank cited weak productivity gains in many countries and a sharp rise in global debt burdens.-AP