Global economic outlook shadowed by substantial challenges

Added On June 7, 2019

World Bank President David Malpass has said the global economic outlook is shadowed by "substantial challenges," highlighting rising trade barriers as one of the major downside risks to growth.

In a teleconference on the latest Global Economic Prospects report, Malpass told reporters that global growth has weakened since the January issue of the report, and "momentum remains fragile."

Malpass said there's been a tumble in business confidence, a deepening slowdown in global trade, and sluggish investment in emerging and developing economies.

In the newly released semi-annual report, the World Bank lowered its global growth forecast for 2019 to 2.6 percent, 0.3 percentage point lower than the previous estimate in January. 

Global growth is projected to inch up to 2.7 percent in 2020.

The report said global trade growth in 2019, in particular, was revised down a full percentage point, to 2.6 percent, the weakest since the global financial crisis.