Already this year, the growth of world GDP by the end of 2019 may be lower than 2.6% than expected.
The outlook for global economic growth is deteriorating amid uncertainty over the UK’s exit from the EU, trade tensions and an economic slowdown in Europe. This was announced by world Bank President David Malpass, reports the Financial Times on Tuesday, October 8.
“Global economic growth is slowing down,” says Malpass. The global GDP growth in 2019 may be below the 2.6% projected in June, “due to Brexit, the recession in Europe and trade uncertainty,” he said.
In addition, Malpass said, too much investment growth in most developing countries does not allow for a significant increase in future returns.
With the economy slowing down, countries need to implement “clear structural reforms”, including strengthening the rule of law so that private companies can compete with state-owned enterprises, the head of the WB said.
“For many countries, this means opening up their closed and secure markets, enabling market forces to determine price levels and liberalizing capital flows,” he said, adding that this would encourage more investment. both foreign and domestic.
Earlier, the IMF estimated the loss of the world economy due to trade conflicts. Economic growth this year has reportedly slowed to its lowest level since the beginning of the decade.
Meanwhile, the Cabinet improved the forecast for the growth of Ukraine’s economy to 3.2%, while previously expected growth of 2.7%.