World Bank lowered its forecast

World Bank lowered its forecast

World Bank lowered its forecast for global economic growth this year and next because of the disappointing outlook for the euro area, Japan and some large developing countries, which can not be compensated by lower oil prices.

According to estimates of the financial institution world economy will grow by 3% this year. This represents a decrease from the 3.4 percent projected by the bank in June. Financial institution publishes biannual report on global economic prospects. 2016 provides that the global gross domestic product will rise by 3.3% compared to the previous forecast of 3.5 percent. The Bank published its first forecast for 2017, according to which growth will slow to 3.3%.

"The world economy is in the embarrassing position, which makes forecasting very challenging task," said the chief economist of the World Bank Kaushik Basu, quoted by Reuters. According to the institution's strong growth prospects over the US and Britain distinguish them from other developed countries, including members of the eurozone and Japan, which still face of anemic economic activity and fears of deflation. "The global economy relies on only one engine - the US. It does not draw a rosy picture of the world," says Basu. According to the forecast declining oil prices will provide greater consumer razgodi in the US, so the forecast for the growth of the largest economy in the world for 2015 increased by 0.2% to 3.2%.

Among developing countries, Brazil and Russia are heavy especially in the negative direction of the forecast. More significant, however, is China, where growth is slowing amid the reforms that Beijing is trying to make the economy less dependent on investment and exports. According to Basu in 2016 and 2017. The pace of growth in India and China will catch up at around 7%. This year China is expected to achieve GDP growth of 7.1 percent from an estimated 7.2% of the bank in October and 7.5% in June.