World Bank bullish on India, sees 7.3% growth in 2018

World Bank bullish on India, sees 7.3% growth in 2018

World Bank bullish on India, sees 7.3% growth in 2018

Although SA's forecast growth of 1.1 in 2018 would only be a third of the region's average, it would still be higher than the country's 0.8% growth in 2018.

The World Bank has projected the country's growth rate at 7.3 per cent in 2018 and 7.5 for the next two years. "Global growth stronger than what we expected", World Bank economist Ayhan Kose told AFP, noting that all the forecasts in the Global Economic Prospects report are better than the June edition.

The World Bank report shows that the economic growth of Bangladesh will increase to 6.7% in 2018-20 fiscal year, and the country will have a stronger export sector. The institution attributed the rise to a recovery in investment and manufacturing, and a continuation of trade.

The regional outlook is subject to external and domestic risks, and is tilted to the downside. The pain would be greatest for emerging markets and developing economies with big external financing needs and weak corporate balance sheets.

In its report, the World Bank also cited headwinds from aging populations in both advanced and developing economies, expecting decreased labor supply and productivity growth. Kose said the bank expects the Republican tax cuts passed last month will boost USA growth by 0.6 percentage point over the next three years.

The bank published its annual global economic outlook on Tuesday evening, which includes predictions of GDP growth around the globe.

The bank pared its 2018 forecast for India to 7.3 percent, down 0.2 point from June. That's also faster than the 3% growth the world managed previous year, according to the bank.

The "highly synchronized" economic expansion across all regions includes solid growth in the big three advanced economies - the US, Japan and the European Union - and improvements in the important emerging market economies. Those included rising debt levels, which were more concerning given that central banks are beginning to raise interest rates and could do so more quickly if the recovery started to ignite inflation, he said.

However, it added that SA policy uncertainty was likely to remain, and could slow needed structural reforms.

Global economic growth is in full swing, but the party could come to end in a couple of years.

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