World Bank projects 2.7% growth in Global Economy for 2017

The World Bank has projected a positive outlook for global economy in the year 2017 as it foresees a moderate northward movement among emerging market and developing economy commodity exporters.

It sees major developing economies moderately accelerating to 2.7 percent high in this fiscal year despite weak investment.

In a new report from the global financial body released on Tuesday, the World Bank also expects advanced economies to edge up to 1.8 percent in 2017.

The World Bank’s January 2017 Global Economic Prospects report opined that “fiscal stimulus in major economies – particularly in the United States – could generate faster domestic and global growth than projected, although rising trade protection could have adverse effects.

“Growth in emerging market and developing economies as a whole should pick up to 4.2 percent this year from 3.4 percent in the year just ended amid modestly rising commodity prices.” It says.

The report however has reservations for policy direction in major economies. It believes that lack of proper focus and directions by policy makers would hamper the expected growth.

“A protracted period of uncertainty could prolong the slow growth in investment that is holding back low, middle, and high income countries.” It says.