WASHINGTON, JAN 11: The World Bank has projected a global economic growth of 2.7% for 2017.
Overall, the economy will grow slightly faster this year after its worst last year,, since the 2008 financial crisis.
Although that projection is lower than an earlier forecast in June 2016, which was 2.8%, it is still better than the 2.3% growth last year.
According to the World Bank, commodity exporters in new markets are emerging and other developed countries should see their economy expanding by 2.1% in 2017, after a 0.3% increase and almost none in 2016.
The global economy faced many challenges last year, from the economic issues in China to the troubled financial market.
“We expect to see stronger economic prospects,” said the World Bank President Jim Yong Kim.
The World Bank Global Economic Prospect Report has forecasted a 2.2% growth in America, an increase from the forecasted 1.6% in 2016.
America’s forecast for 2016 was lower that the projected growth in June which was 1.9%, while the prospect for this year remains unchanged.
In the years following the 2008 financial crisis, the World Bank and International Monetary Fund have been repeatedly proven to be too optimistic in their forecasts.
America’s growth in the first half of last year was weak when its companies struggled with the strengthening dollar, which reduced total exports.
The big drop in oil prices triggered a sharp reduction in expenditure by energy companies.
On a global level, many developing countries are struggling with the fall in commodity prices that reduced the income they receive from products.
The new forecast expects commodity prices will recover gradually, and also that Russia and Brazil will continue to grow after the economic crisis in 2016.
World Bank projects 2.7% global economic growth
